Verily to Revamp Business Structure Amidst New Investment Efforts

The life sciences wing of Alphabet, Verily, is in the process of overhauling its business framework as it seeks new financial backing.

In a recent meeting with employees, the CEO of Verily, Stephen Gillett, communicated plans to convert the company from a Limited Liability Company into a C corporation. This transition aims to make the company more attractive to potential investors. This information, shared by an insider who requested anonymity due to restrictions against speaking to the media, indicates a strategic move as Verily looks toward fresh investment opportunities.

Gillett informed the workforce that the shift in company structure aligns with their pursuit of new investments. However, he stopped short of confirming if any agreements had been finalized or who the potential investors might be.

It was also disclosed during the meeting that the valuation of employee shares in Verily had been significantly lowered, with a decrease of approximately 80% since their 2024 market value, according to documents referenced by Business Insider.

Gillett also mentioned that the company's market valuation was considered overly high relative to its revenue, which could be a reason behind the share devaluation.

When reached for comment, a spokesperson for Verily chose not to provide additional information.

Strategic Business Moves

Business Insider had earlier reported that Verily was in search of new funding for this year. Last month, it was revealed to employees that Verily would be shutting down its longstanding devices division and implementing layoffs as part of its ongoing restructuring efforts. Initiated within Google's experimental lab, Verily has been focused on reducing costs and simplifying its operations for several years.

The company has gradually disentangled its technology and operational dependencies from Google as it gears up to become an independent entity, separate from Alphabet's umbrella.

In a previous communication, Gillett expressed his confidence in Verily's trajectory despite the tough choices ahead, acknowledging the dedication of the team's commitment to the company's evolution.