The stock price of Alphabet Inc Class A (the owner of Google) (GOOGL) has risen by over 1% today till the late morning trading session. The stock closed at $1094.76 on Monday.
The California based company is an American multinational conglomerate founded on October 2, 2015, by the two founders of Google, Larry Page and Sergey Brin, with Page serving as CEO and Brin as President. It is the parent company of Google and several other companies previously owned by them. The company is based in Mountain View, California, at Googleplex. The reorganization of Google into Alphabet was completed on October 2, 2015.
Alphabet’s portfolio encompasses several industries, including technology, life sciences, investment capital, and research. Some of its subsidiaries include Google, Calico, GV, Google Capital, Verily, X, and Google Fiber. Some of the subsidiaries of Alphabet have altered their names since leaving Google—Google Ventures becoming GV, Google Life Sciences becoming Verily and Google X becoming just X. Following the restructuring Page became CEO of Alphabet while Sundar Pichai took his position as CEO of Google.
Google bought Zagat seven years ago for $151 million. Since then it’s integrated Zagat’s listings and ratings into Google Maps, while letting Zagat’s website and publications be outdone by other restaurant review companies. Now, Google thinks it has gotten all the use out of Zagat it can and is selling the brand to The Infatuation, a nine-year-old restaurant review company, reports the New York Times.
In a statement, Jen Fitzpatrick, a vice president of product and engineering at Google, said: “Zagat has helped us provide useful and relevant dining results for users across our various products. The Infatuation is an innovative company that will be a terrific home for the Zagat brand.” The Infatuation is reported to be keeping Zagat as its own brand for now. As for what the company paid Google for Zagat, neither side will say.
Services like Yelp and the like have found more efficient methods for crowd sourcing customer opinions. That manner of content has become increasingly important for driving services like Google Maps, which incorporates it directly into its location services. Zagat was initially used to help overhaul the restaurant offerings in Google+, as the company was hoping to build a legitimate Facebook competitor.
Over the years, Google’s involvement in the company’s public facing offerings were pretty minimal. Though it did make a big push in 2016, revamping the Zagat app with individually tailored review results. The Infatuation, which uses an in-house team of reviewers to write up restaurants in major cities like New York, San Francisco, Los Angeles and London, is picking up the service for an undisclosed amount. The site clearly believes there’s value left in the Zagat brand, even as the business of online reviews has changed significantly in the seven years since Google picked it up.
Our analysts have given a “HOLD” rating to Google’s stock. Although it shows great potential, however due to the fluctuation, this is not the stock where you want invest big right now.