Alphabet Inc CEO Larry Page stated that the holding corporate structure for search system Google and a host of new businesses has been successful in developing more transparency for investors.
As the two-year anniversary of Alphabet’s business restructuring approaches, Page wrote in a letter to investors that the model has empowered business owners outside its core search business.
“The new structure has helped entrepreneurs develop and run companies with the autonomy and speed they need,” he wrote in the letter published ahead of the Mountain View, California-based company’s revenues on Thursday.
Page took Silicon Valley by surprise in August 2015 with the development of a new company, Alphabet, to house Google and new ventures varying from self-driving vehicles to health technology, which would be broken off into different companies. The structure was meant to provide financiers greater exposure into the search unit’s performance and offer leaders of the new businesses more autonomy.
Wall Street has encouraged the new structure, however it has had mixed results. The self-driving automobile group has finished into a new company, called Waymo, however a host of Alphabet executives have left, including the leaders of smart home innovation company Nest and Google Ventures.
Since the restructuring, executives have found out a lot about ways to best launch the new companies, Larry Page wrote, pointing out the spin-off of Waymo in December.
“In general we are taking a patient approach to investing our capital,” he stated. “We’re not going to invest if we don’t see great opportunities and we feel like our track record for choosing some important efforts long before others is pretty good.”