Motley Fool Money What Happens if Alphabet Breaks Up?
Aug 14, 2024
Tim Beyers, a technology and consumer goods expert, teams up with Jason Hall, a specialist in renewable energy and tech, to tackle the potential breakup of Google. They dissect a recent anti-competitive ruling and its implications for consumers and advertisers. The conversation also extends to snack food dynamics, highlighting Mars' surprising acquisition of Kelanova amid changing market trends. Finally, they navigate the challenges in the solar market, focusing on key players Enphase and SolarEdge, revealing future opportunities and obstacles for investors.
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Google Breakup Rarity
- Google's potential breakup is a rare event, historically comparable to Standard Oil and AT&T.
- The core issue is Google's dominance in advertising, potentially harming advertisers due to its control over pricing and ad selection.
Breakup vs. Concessions
- Regulators likely prefer concessions from Google that foster a more competitive innovation ecosystem.
- Breaking up Google could unlock significant shareholder value, similar to AT&T's breakup.
AT&T Breakup Precedent
- Tim Beyers expresses enthusiasm for a potential Google breakup, hoping to receive stock in various spun-off entities like YouTube and Google Cloud.
- He cites the AT&T breakup as a precedent where the sum of the parts exceeded the whole, creating substantial shareholder value.