Google parent company Alphabet subsidiaries to bear own costs

Alphabet, the newly formed parent company of Google, plans to charge its internal startup companies like Google X and Google Life Sciences for using corporate services in an effort to boost financial accountable and remain self-sustaining, according to a Wall Street Journal report.

Advertisement

People familiar with the situation told WSJ said Alphabet executives hope having these “bet” companies responsible for some of the costs will make them more accountable for them, and possibly curb spending.

“After a period of big expense build up, there was an appreciation that we needed to manage the cadence of spend,” said Ruth Porat, CFO of Alphabet, in an October earnings call, according to the report.

More articles on Google:

Google, American Heart Association collaborate on joint venture: 5 things to know
In cloud computing, Google seeks to catch up to Amazon
Why NIH’s head of mental health wants to work for Google

Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit

Advertisement

Next Up in Health IT

Advertisement

Comments are closed.