Finance

Could Google Break Itself Up? A Bold Proposition Amid Antitrust Woes

2025-06-02

Author: Jia

In recent months, Google has faced significant antitrust challenges, resulting in losses in two important legal battles. With its search business under scrutiny and stock values stagnating, federal prosecutors are now urging the tech giant to divest key segments of its operations.

But what if instead of fighting back, Google decided to turn the tables and proactively break itself apart? This audacious move could allow Google to emerge unscathed—transforming from a sprawling conglomerate into a collection of nimble, independent companies.

As the tech industry grapples with intense scrutiny, such a self-imposed breakup could garner widespread approval from both sides of the political aisle. Embracing its original ethos of 'Don't be evil,' this strategic pivot could potentially redeem Google's tarnished reputation.

Currently, the Department of Justice is pushing for Google to sell off its Chrome browser and ad network, and possibly its mobile platform, Android. However, tech analyst Gil Luria from D.A. Davidson suggests that a more transformative approach is in order.

In a recent report, Luria argued that Google's diverse range of offerings—from the self-driving technology at Waymo to the robust video platform YouTube—have all become a muddled conglomerate rather than a cohesive powerhouse. He speculated that if these subsidiaries were publicly traded, their combined value could exceed a whopping $3.7 trillion, nearly double Google's current market value of $2 trillion.

Luria highlighted how search revenues, which drive more than half of Google’s income, are increasingly threatened as AI technologies redefine user queries. For the first time, searches conducted through Apple’s Safari browser dipped in popularity this April, causing Google’s stock to tumble by over 9% this year alone.

Meanwhile, segments like Waymo, if independently valued, could rival the likes of Tesla’s impressive market capitalization, particularly given Tesla's still-theoretical ambitions in self-driving technology. YouTube could similarly shine brighter compared to Netflix in the eyes of investors.

Despite recognizing the low probability of a breakup—Luria estimates less than 10% likelihood—he believes the pressure is mounting. Google's ongoing legal troubles, including a contentious antitrust case regarding its advertising technology, underscore the urgency for change.

Historically, corporate breakups have shown mixed results. A notable example is AT&T, which voluntarily split in the 1980s to avoid legal battles with the Justice Department, resulting in increased competition. Though Google has been tight-lipped about Luria’s claims, it continues to emphasize its commitment to innovation.

Supporters of a breakup argue that reducing Google’s size could spark healthy competition and lower ad costs for clients. Yet critics warn that a split could leave Google executives at a financial disadvantage and undermine the advantages of operating scale in a highly competitive market.

The tech giant's founders, Larry Page and Sergey Brin, maintain a significant influence over any potential restructuring, making any drastic changes a difficult prospect.

Amidst this tumultuous landscape, many in the industry reflect on past corporate breakups, noting the challenges they pose and the lessons learned from companies like Microsoft, which struggled in the wake of antitrust scrutiny and eventually rebounded only after a change in leadership.

As Google faces an uncertain future, the question remains: could daringly breaking itself apart be the key to revitalizing its growth and innovation?