Google now owned by Alphabet – and has a new CEO

Let’s back up a bit.

Pichai becomes only the third chief executive of the company after Schmidt and co-founder Larry Page.

Mr Pichai’s appointment as chief executive of Google is an endorsement of his talents as both an engineer and a manager. He was the senior vice-president for product before he was appointed CEO and his resume leaves no doubt that he is more than capable to run one of the most profitable companies in the world.

Essentially, the businesses that make Google all its money. A good name must convey what the company stands for.

“We probably won’t put it on the agenda to sue them over it, but if they want to make us a very generous offer for our domain names, we’ll certainly consider it”, Steve Lockwood, the company secretary, told the New York Times.

Pichai quickly began to receive more responsibility, however, taking on involvement with various Google search products including Firefox, Google Toolbar, Desktop Search, Gadgets, and Google Gears and Gadgets. A company on its own can not effortlessly take a superstar for temporary assignment to shore up the defects. And though the full list of Alphabet letterings isn’t codified, the preliminary predictions are that Alphabet will consist of at least seven major companies, with Google as its largest subsidiary.

But Google Inc. won’t exclusively be made up of core services – it will also include the Advanced Technologies and Projects group, or ATAP.

The main goal for all of this, as The Verge reports, may be to appeal to shareholders and prepare for future economic growth.

Google shares have risen by about 4.1% on Wall Street after investors welcomed news of its restructuring.

“In addition, 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”, Page writes.

According to Dr. Aleksi Aaltonen, assistant professor at Warwick Business School in the United Kingdom, the holding company structure will help Google, making it easier to sell off its less successful assets. The company’s two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG. The Ventures and Capital arm will also come under Alphabet’s direct control.

Pichai started his career at Google working on Chrome and inherited Android when former mobile head Andy Rubin moved on to work on robots for the company (and later just moved on). However, Google does have automotive connections in the form of its Android Auto connected cars technology and its research into self-driving vehicles.

There are other reasons suggested for the creation of Alphabet, which incidentally is a popular name for companies. “The core problem, from the EU’s perspective, is that Google enters into “vertical search” markets while at the same time running the dominant search platform”, noted Keith Hylton, a professor of law at Boston University and contributor to Antitrust Law Journal. Now Google only strives to keep up with its competitors, releasing half-baked tools we don’t need and investing in technologies none of us will care about for another decade.