How Google (GOOGL) Is Strategically Preparing for a Potential Google Ad Manager Split

Google's advertising empire faces its biggest structural shakeup in decades.

The tech giant quietly positions its crown jewel—Google Ad Manager—for potential separation. Internal restructuring accelerates as regulatory pressure mounts globally.

Behind the Scenes: Operational Decoupling

Engineering teams now build firewalls between Ad Manager and broader Google infrastructure. New compliance protocols emerge daily. The message? Prepare for independence while maintaining seamless client service.

Market Impact: Advertising's New Frontier

A standalone Ad Manager could unleash unprecedented innovation—or create advertising's next too-big-to-fail monster. Competitors watch closely, ready to pounce on any misstep.

Because nothing says 'healthy competition' like a forced breakup that'll probably just create two dominant players instead of one—Wall Street already pricing in the management fees for both entities.

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This surprised the agency employees, who are used to working with a different part of Google that helps buy ads, not sell them. These recent moves suggest that Google may be preparing Google Ad Manager to operate independently, in case the court forces a breakup. Interestingly, expanding into ad buying could make the unit more complete, like other independent ad tech companies. However, if the unit remains within Google, this shift wouldn’t make much sense since it WOULD just create competition with Google’s own ad-buying division.

Unsurprisingly, Google argues that a breakup isn’t needed and instead says it will improve how its tools work with others. Still, the case has momentum, especially after a judge ruled in April that Google holds a monopoly in helping publishers sell ads, which backs up the Justice Department’s position going into the trial. Nevertheless, it is worth noting that the unit has been having trouble adapting to newer markets like streaming TV and mobile apps. Indeed, its revenue has dropped (falling 7% from 2022 to 2024), and while it still earns billions, it’s losing ground.

Is Google Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 27 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $217.25 per share implies 1.7% upside potential.