[KKKKkkkk1]

If this is merely a scheme for Google to sweep the losses under the carpet, what's in it for the investors who'll be left holding the bag? And mind you, in order for the losses to go away, the value of the company at the time it's spun out needs to exceed the billions of dollars already invested in it over the span of 12 years. (Including $120m paid out in bonuses to Anthony Levandowski alone.)

[ChuckMcM]

I wasn't trying to say it is "merely" a scheme. Its sort of like shorting some stock and at the same time buying a call option for twice that many shares above the price that you shorted it for.

The short part gives you some cash now and if the stock drops even further, you can cover the short and keep the profit. But if the stock goes up, just when there is a margin call you've got an "in the money" call option to cover it. So if it is shooting up you exercise the call, cover the short with half the shares, and profit when the other half keep shooting up.

Anyone can nominally do this on any stock, but there are tax advantages to the company that does it with one of their own subsidiaries.