- Google Fiber just hired its first CFO
- Analyst Roger Entner said this is likely a sign the company’s starting the process of becoming a standalone business
- But when that might happen is uncertain
Google Fiber just landed its first chief financial officer. That could be a sign of big things to come, an analyst told us.
John Abbot, who was most recently CFO at AI company Dataminr, will oversee Google Fiber’s Finance, Strategy & Analytics and Accounting teams. He’s had over three decades of experience across media, technology, infrastructure, telecom and finance, a press release notes.
Google Fiber CEO Dinni Jain said in a statement Abbot “understands this business from many angles and his expertise at helping companies grow and scale along with his exceptional brand of leadership are exactly what we need to take the next step in our development.”
A Google Fiber spokesperson told Fierce Network, “John’s extensive experience in the industry – and with corporate finance and capital markets – will be invaluable as we embark on this next chapter in the GFiber story.”
What does this mean?
According to Recon Analytics’ Roger Entner, Google Fiber’s move is likely a sign it’s starting the process of spinning off from Alphabet to become a standalone business.
In February, Google Fiber confirmed a Reuters report that said Alphabet is seeking outside investors for the operator. That report also indicated Google Fiber’s future goal is to be independent from Alphabet.
But when that might happen is anyone’s guess.
“It’s hard to predict,” Entner said. Perhaps it could happen within six months, or it could take a couple of years.
He explained ever since Ruth Porat came on as Alphabet CFO, the company has been trying to curb its spending.
Prior to that, Google Fiber was expanding “dramatically.” But in 2016, Google Fiber put all expansions on hold and it wasn’t until 2022 that it resumed deploying to new markets.
What we’re seeing now, Entner said, is Google “focusing on its core business” and spinning off its non-core businesses.
For example, Google last year sold its domain-hosting business to Squarespace. In the past year, it’s also shut down services like Stadia, its cloud gaming platform, and Currents, which was a replacement for Google Plus for G Suite.
But back to Google Fiber.
“Why [does] a search engine, ad tech company need its own fiber networks?” said Entner. “Just doesn’t make sense, right?”
It just keeps growing
In the meantime, Google Fiber’s been expanding both its footprint and its personnel.
The company in the past several months has also appointed a new COO, its first chief growth officer as well as its first technology and product officer.
On the expansion side, Google Fiber this month announced its service is coming to Las Vegas and it’s expanding its footprint in the Seattle metro area.