Google conglomerate to rebrand as Alphabet

Ville Hellman, head of development at digital agency Rawnet, said: “Google has extended their operations to cover a lot of new fields for several years now, and some of the new fields it is entering are only very loosely related to their core business“. Alphabet Inc will replace Google Inc as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet.

Last quarter, Google posted $17.7 billion in sales, 90% of which was attributed to advertising it sold through search, partner websites, YouTube and Android. Other projects include the rollout of Google Fiber for high-speed Internet and cable TV and Google’s Nest home technology business. Now under Sundar Pichai’s control, Google will run products and services such as search, ads, maps, apps, YouTube and Android.

The Mountain View, California, company’s stock was up about 5 percent in after-hours trading following the announcement Monday afternoon.

“With this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole”, explained Page. And Alphabet will include new ventures that Page and Brin conceive in the coming years.

Google is now Alphabet, Alphabet owns Google, and Google has a new CEO, who reports to the old CEO. There’s every indication that this means Google+ will also continue to reside within Google, rather than be spun-out as a separate Alphabet company.

“This is a drastic move, no doubt, but surely it will give Google – sorry, Alphabet – the ability to continue to leverage the unbelievable and innovative culture we’ve seen come from Google since as far back as I can remember”, says Fuld. He also noted that alpha-bet means (Alpha is investment return above average) is what they are striving to accomplish. Other companies will focus on more experimental and fledgling endeavors such as self-driving cars, medical devices, life science research, and more.

Indian Prime Miniser Narendra Modi even took to his Twitter account to congratulate him on his new role.

The move will also allow Google to give some of its top executives weightier-sounding titles. But the name Google will not disappear, it will become a subsidiary of Alphabet.

The real benefit to Google from the organisational rejig, in addition to appeasing investors to some degree, could be pre-empting further antitrust issues that could surface down the line.