Google is evil - why is it not shut down
First Google is a money machine. Shutting it down would be extremely disruptive to the US economy. So when the assets were seized, first the CEO was pushed out. Police will catch up to him later. Then some other executives were pushed out. I say pushed out because they were not fired, just told that the jig was up and they were no longer wanted in the organization.
Now Google is a very big organization with lots of people. And most people are good. And American jobs do need to be protected. So everything keeps running, except for select programs which are evil or which feed evil. Fortunately most of those were in North Korea where nobody noticed that they suddenly stopped. Or in China where we just heard about delays, changes in funding, a roadblock with the Chinese government. Whatever cover story works. The end result is the same. In the USA and Western Europe, people are reviewing things, and the employees are allowed to help by leaking stuff to them about evil Google projects. So it seems like the employees objected and Google had to stop the program. In some cases, code and people moved over to military jobs and the project is now a military secret and securely under DOD control. Which is fine because that is what DOD does and has always done. Why would they outsource strategic work to outsiders whose security is lax?
Over time Google is transformed. Data is still collected, but the bad guys can't get access to it any more. The NSA is no doubt evaluating it to see if there is anything useful and I suspect they will keep it going for a while so that people who bought devices feel they got value for money.