Report: Google is creating a unit that lets employees build their own startups

Apr 24 2016, 23:41 ET | By: Eric Jhonsa, SA Eye on Tech, SA News Editor

The Information reports Google (GOOG, GOOGL) is building a startup incubator called Area 120. Teams of Google employees will be able to submit business plans to join Area 120, and those accepted can work on their projects full-time for a few months. Afterwards, they’ll be able to pitch Google on creating a new company that Google would take a stake in.

Like other tech giants, Google has seen plenty of talented workers depart over the years to launch startups, with some of the efforts proving to be huge successes (examples include Twitter and Instagram). Area 120 represents an attempt to keep such entrepreneurial workers within the Google empire (to an extent), and profit along the way.