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No it isn't. Clearly Google's management believes the new structure is accretive to shareholder value otherwise they wouldn't have done it.

I really wonder about this though. Conglomerates have a mixed track record [1] and from where I sit, it's not clear Larry/Sergey are better capital allocators than the public markets.

[1] Brealey & Myers "Corporate Finance" has a good section on this topic, comparing big Asian conglomerates like Samsung, LG, Yahama, etc. to American public companies over time.



Regulatory costs can be an huge drain on long term profits, and I'd count anti-trust as a regulatory cost.




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