Google CEO Sundar Pichai will take over from Larry Page as head of parent company Alphabet GOOGLE in 2020 and he may want to put his own stamp on things.
One are where he could make a big change is to acquire a significant enterprise vendor such as Hewlett Packard Enterprise HPE in order to boost Alphabet’s cloud business. The company could tie hardware and other purchases to an automatic cloud contract, similar to how Microsoft has leveraged its installed base of business customers that use Windows to sell its cloud services.
Another measure that Pichai could implement is a capital return program in the form of a dividend. Right now, the company has no dividend and just does occasional share buybacks that amount to a small proportion of its market cap. Given its lagging return in 2019, instituting a regular payout to investors, as both Apple AAPL and Microsoft MSFT have done for a while now, may be what’s needed.