Alphabet may spin off Google ad network, says Citi

Citi says a U.S. District Judge ruled that Alphabet’s (GOOGL) (GOOG) Google illegally monopolized the publisher advertising server and ad exchanges markets. This ruling focuses primarily on Google’s advertising network, which Citi projects accounts for 8% of 2025 gross revenue, but is declining, and contributes 1% to overall company EBITDA, the analyst tells investors in a research note. Citi says believes that while it is likely to take some time for any proposed remedies to be ruled upon and the appeals process to be completed, it wouldn’t be surprised to see Google ultimately spin off its ad network as a result. Google’s core search and owned and operated ads business would not be as impacted from a spin or divestment, the firm adds. It keeps a Buy rating on Alphabet with a $195 price target.