The ad business would pay the search business for ad placement. The search business would also be free to auction ad space to other providers.
Doesn't that make them an ad business?
Pre Split:
- Company A
- provides: search
- sells: ad space
Post Split: - Company A
- provides: search
- sells: ad space
- Company B
- (re-)sells: ad space
Seems like this solves nothing and can be repeated ad infinitum. There are many companies which already does what Company B does - what exactly will this fix?If post-split that’s company B, I’d argue that is a genuinely new structure with some different properties.
Company A would still have an ads team to manage the integration, but they would explicitly outsource ad selection to (potentially) multiple partner companies.
What you're describing is exactly what Google ads are today.