Alphabet is seeking outside investment for GFiber internet business

Alphabet is seeking outside investment for GFiber internet business is a public record based on article evidence, entity context, event links, and relationship context.

Alphabet’s GFiber seeks external investment to expand its Wi-Fi and internet business in the US, facing competition from larger ISPs and lacking coverage in major areas. Despite tripling its customer base in six years and signing agreements to extend services to new cities, GFiber remains challenged. Alphabet’s CFO aims to enhance GFiber’s technology leadership and capture potential breakthroughs across its portfolio, including considering external capital for other ventures.

Alphabet has announced plans to seek external investment for its GFiber Wi-Fi and internet connectivity business sold in certain US regions, aiming to expand to more cities. GFiber, owned by Google’s parent company Alphabet, competes with larger internet service providers like Comcast (CMCSA.US), Verizon (VZ.US), and AT&T (T.US). Since launching in Kansas in 2012, GFiber expanded to 15 states. Despite tripling its customer base over six years, GFiber didn’t disclose specific user numbers but signed agreements in 2023 to extend services to over 25 new cities.

Facing competition from established giants and lacking internet service coverage in major US areas, Alphabet’s CFO Ruth Porat stated seeking external capital would enhance GFiber’s technology leadership and expand coverage. Alphabet declined to comment on the amount GFiber seeks or its valuation, with sources revealing GFiber hired an investment bank to sell company equity, aiming for independence from Alphabet.

Also read: Investors punish Microsoft, Alphabet as AI disappoints GFiber is among Alphabet’s “Other Bets” GFiber is among Alphabet’s “Other Bets,” early-stage businesses outside of Google, including Verily in health and Waymo in self-driving cars, collectively losing $4.1 billion in 2023, mainly from internet and healthcare services. Alphabet’s CFO mentioned focusing on investment and capturing potential breakthroughs across the portfolio, including considering external capital for its “moonshot” division X, indicating efforts to adjust cost structures.

Like other tech firms, Alphabet announced layoffs recently, though it didn’t comment on how GFiber’s financing aligns with its overall cost-efficiency plan.