Credit Suisse statement on Google management change:
Management Changes Afoot
Coincident with its earnings release, Google announced a series of management changes. As of April 4, 2011, Larry Page, Co-Founder of Google, will assume the role of CEO with day-to-day operational responsibilities, while current CEO Eric Schmidt will be elevated to Executive Chairman. In this position, Mr. Schmidt will focus on partnerships, external deals and business relationships, and government outreach, among other duties. Google CoFounder Sergey Brin will focus on strategic projections, with an emphasis on new product development.
Overall, while the announcement was somewhat of a surprise, we do not expect the changes to materially alter Google’s corporate strategy. Thus, the news does not alter our fundamental view of the stock and we continue to hold Google’s management team in high regard and view the management bench as solid.
While that certainly is a Google talking point, as Brin and Page said, “Schmidt, Page and Brin have long run Google as a trio, an approach they spelled out in an “owner’s manual” included in the company’s 2004 IPO filing.
“We run Google as a triumvirate,” Page and Brin wrote. “The three of us run the company collaboratively with Sergey and me as presidents. The structure is unconventional, but we have worked successfully in this way.”Schmidt said he doesn’t anticipate any material change in strategy.
“We tend to agree on everything,” he noted. Schmidt also said Thursday that Page is “ready to lead.”
Also why did Eric Schmidt tweet this?
Day-to-day adult supervision no longer needed! http://goo.gl/zC89p