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As for real products, at Google's current size it has become near impossible to launch new ones worth their time.

Google currently has a quarterly revenue of $70-80B.

Imagine an internal team launches a new product to collect $100M in quarterly revenue. An earth-shattering success for any entrepreneur.

For Google...it doesn't even move the needle. Does nothing for stock, it's not strategic, and may become a liability later on.

You would need to launch a multi-billion new sub business for it to be of any interest to Google, which is impossibly hard.



This is why they should go full conglomerate and spin off companies all the time.

Otherwise, with those expectations, it's impossible to build something good and impactful.


I really thought this was what the plan would be when Alphabet was formed.


Google X/X Development LLC is the Google incubator for possible spin-offs as far as I can tell.


What would be the benefit of doing it spun-off vs. in-house when it's still owned by the same company and making the same amount of money?


Less red tape, more freedom to operate.

If done inside a conglomerate, it can be the best of both worlds. Access to Google tech and funding, but free from rigid corporate hierarchies, at least at the beginning.


Spinning it off limits the downside/risk to the parent company. Basket of options worth more than an option on a basket and all that.


... which is the reason why many large corporations acquire products: only once they are big enough, they are relevant.

Issue for Google: They have to be carful for Anti-Trust not blocking the acquisition for some reason.




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