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Alphabet moves to spin off life sciences unit Verily amid antitrust case
Alphabet Inc. has been working for more than two years to separate its life sciences unit, Verily, from the company’s core operations, a move that could result in a sale or spinoff, as per reports. The development was highlighted during a federal court hearing in Virginia, US, where Alphabet executives were testifying in the US Justice Department’s case alleging that Google illegally monopolized advertising technology.
Verily, a sister company to Google under the Alphabet umbrella, has been gradually moving its operations from Google’s internal infrastructure to the Google Cloud Platform as part of efforts to operate independently. The company completed a planned technical and operational separation by the end of 2024, allowing it to function as an independent entity within Alphabet.
Verily develops software and services aimed at advancing medical research and improving patient care. The separation reflects Alphabet’s broader strategy to restructure its “Other Bets” division, a portfolio of high-risk projects overseen by President and Chief Investment Officer Ruth Porat, encouraging these ventures to operate more like independent startups.
Alphabet intends to remain a significant shareholder in Verily while allowing the company to bring in external investors. The separation also highlights the technical challenges involved in moving operations off Google’s proprietary infrastructure — a point of contention in the ongoing antitrust litigation, which includes a government request to compel Google to sell its advertising exchange.
The planned spinoff highlights Alphabet’s focus on streamlining its core business while creating independent growth pathways for its specialized units.
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