“Google is not a conventional company“.
Google CEO and co-founder Larry Page will be CEO of the new holding company, while longtime Google executive Sundar Pichai will become CEO of Google’s core business. A BMW spokeswoman said overnight that the automaker was not informed ahead of time of plans by Mr. Page and Mr. Brin to create a company called Alphabet and had not received any offers to buy the Internet domain or the trademark. Many of these enterprises, including a “slightly slimmed down” Google, according to Larry Page, will become Alphabet’s wholly-owned subsidiaries, making Alphabet a collection of companies.
Perhaps Google (Alphabet?) should have googled its new name before it decided to restructure the whole company.
Page adds he wants each Alphabet company to develop their own brands and have more independence. The new structure is kind of like the tech version of Warren Buffett’s Berkshire Hathaway Berkshire Hathaway, which has a host of operating segments alongside its insurance operations and investment portfolio.
If so, they would have discovered that the Internet domain alphabet.com, as well as the trademark Alphabet, already belonged to someone else – the German automaker BMW. The company’s two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
“We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!”
“You will get a certain amount of more clarity about where Google are earning and spending their money in terms of their core business in search and YouTube”.
Google unveiled a surprise corporate overhaul Monday, forming a new parent company dubbed Alphabet to include Internet search and a handful of independent companies. A separate bucket will house Google’s more far-flung experiments and acquisitions. However, Google does have automotive connections in the form of its Android Auto connected cars technology and its research into self-driving vehicles.
Now is the new CEO of Search Engine which would come under the new parent organization Alphabet Inc, since of his joining he headed a number of key consumer products which are now used by hundreds of million people.
Google shares rallied some six percent in after-hours trading on the news to $672. Google’s approach to taxation is increasingly in focus both in the United States and more recently in Australia, with Google reportedly negotiating a 10% tax rate on its profits in Singapore recently.