Business Chief APAC+ANZ Magazine October 2015 | Page 9

accountability , and create a house of brands as a catalyst for innovation .
Only a few Alphabet businesses — namely Nest and Fiber — currently generate significant revenue . Some estimate those units will bring in about $ 500 million in total revenue in 2016 , with about $ 100 million to $ 150 million in gross profit . The rest of the Alphabet businesses , many of which are still in early stages — such as the self-driving cars that are part of Google ’ s X lab
— consistently operate in the red .
Alphabet ’ s non-Internet-related businesses could be hemorrhaging up to $ 4 billion a year , risking having a negative value when they are spun out into separate businesses under the Alphabet holding company .
Perks to the shake up One overlooked aspect is how the new structure stops forcing subsidiaries to work dependently .
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