Google’s recent reorganization under its parent company Alphabet Inc. will bring about several changes for its smaller startup companies, the Wall Street Journal reports. Those smaller companies, such as Nest, are known as “bets” in Alphabet and will have a significantly higher amount of freedom than before.
According to the report, the “bet” companies will be able to essentially remain independent. They will be able to do their own hiring, compose their own contracts, and plan their own marketing campaigns. The “bet” companies will focus more on speed and keeping up with the times and being able to operate indpendantly from Google’s core business will aid that focus significantly. Executives at Google’s core businesses also will be able to more freely focus on the the company’s tentpole operations, which include YouTube, search, and Android.
The “bet” compaines include operations such as Googel Life Sciences, Fiber, and Nest.
“It gets a little faster, more efficient and a little more independent,” said Andy Conrad, CEO of Google Life Sciences. “I act as a CEO of an independent company instead of a senior executive within a large company.”
How the “bet” companies will operate is very similar to how Nest has operated since it was initially acquired by the company. Nest and Tony Fadell essentially operated with total freedom from the reigns of Google executives, given the freedom to focus on their products and improving their customer experience on their own.
“We’ve always been run very independently. Alphabet just formalizes that. It’s a great way to scale a company,” Nest cofounder Matt Rogers explained.
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