This has Ruth Porat's stamp all over it - they hired her as CFO to bring "financial discipline" to Alphabet, and among those duties was to rein the moonshot stuff into actual businesses, or kill them off.
I actually think this is good news for Alphabet's long term ability to innovate: if they can demonstrate that some of these Moonshots can stand on their own their investors / board will be more apt to provide for freedom to innovate over the long term.