Google announces major restructure

The official web address of the new company which now houses Google is abc.xyz, however, changing it slightly leads to rival Microsoft’s bing homepage. They will all report to Alphabet CEO (former Google chief) Larry Page, who has been a longtime admirer of Buffett’s managing style.

Alphabet won’t have any direct implications for consumers, and it’s instead meant to give its subsidiaries room to grow without needing to fit into Google’s traditional role. These ventures include Google’s ongoing initiatives in different arenas, including self-driving cars and avant-garde medical research.

All the group companies including Google will come under Alphabet; however, it won’t put any effect on Google shares.

The company’s mysterious X lab, responsible for developing initiatives such as drone delivery business Project Wing, will now operate under Alphabet, as will its Life Sciences division, which is developing a glucose-sensing contact lens.

The name was chosen, Page said, because the alphabet represents language, one of humanity’s most important innovations, and is the “core of how we index” in a Google Internet search.

And it is clear to us and our board that it is time for Sundar to be CEO of Google.

It will be a holding ground for other companies acquired by Google, enabling the company that is known the world over for its Internet presence to work on other technologies without impeding development in its core fields. A number of things started by Google now have more than a billion users such as Android, Google maps, Chrome and YouTube and Google has no plans of stopping here.

Alphabet will continue to trade under the GOOGL and GOOG ticker symbols when the change kicks in later this year. There are more Indians than those belonging to other nationalities, after Americans, in the S&P 500 companies.

When viewed all together, it’s certainly remarkable how many varying and ambitious endeavors Google is now involved in.

Analysts said the new structure could herald a new era of fiscal discipline and transparency in some of Google’s more experimental and opaque business units.

The only difference between Google and Alphabet is that Google has a CEO in Sundar Pichai, and is owned by Alphabet.