Google: Paving Path to Enhancing Shareholder Value Through New Corporate Structure

Recently, GVA Research was asked by Richard Waters from The Financial Times to comment on Google’s new corporate structure. An excerpt is below:

Some on Wall Street read even more into the shake-up. Separating Google’s businesses under a holding company is the kind of thing that can lead eventually to breaking the company up, said David Garrity, an analyst at GVA Research.

“People see this and they immediately think: ‘spin-off’,” he said. While any move would be far in the future, Mr Garrity suggested Monday’s share price rise showed that Wall Street believed this was a first step — since break-ups often follow when companies “slice and dice things so they appear to be worth more than they are”.

Thanks to Richard for the mention. You can read the full article here.