Pivotal's Brian Wieser: Google's Alphabet Reorganiziation Is Like Facebook

Google Inc GOOGL announced on Monday afternoon that it will be reorganizing its operating structure by creating a holding company Alphabet Inc. which will have various businesses that Google operates as its subsidiary.

Brian Wieser, senior research analyst at Pivotal Research, was on CNBC to weigh on this reorganization.

'Not A Terrible Idea'

"Well it's probably positive, again the transparency issue is paramount here," Wieser began. "Arguably they didn't need to rename the company to do it; It's not a terrible idea. In the same way, you can look at Facebook for example. I've long since thought of Facebook as a holding company with a bunch of different things including the social network we know as Facebook."

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He continued, "In the case of Google, they are a bunch of different things including the search engine we know of as Google, the video portal we know of as YouTube etcetera, etcetera. All of the non-ad supported businesses are so fundamentally different that breaking them out I think is very, very important."

A Precursor To Major Changes?

Wieser was asked if this move by Google can be seen as a precursor to some other major corporate structural change the company might be doing in the future. He replied, "That would be giving them a lot of credit for something they haven't demonstrated a willingness to do as yet. I think there would be a lot to be said around taking all of the non-advertising businesses and managing them completely separately."

"I've never guessed for a second that they would actually contemplate doing it. It's a positive sign if they're going to provide transparency to these different businesses because it might give some suggestion that maybe at some point they will," Wieser concluded.