The key for the parent company is to allow each of the companies to develop their own brands successfully and be truly independent.
While the market has adjusted to the breakneck speed at which Google continues to accelerate, investors can only speculate at the dreams and ideas that have inspired Google’s latest move. Google have a long history of buying tech start-up companies, not all of which necessarily are complemented by being associated with Google. What do we mean by far afield?
“It’ll be necessary to examine the legal trademark implications”, a BMW spokeswoman told German business magazine WirtschaftsWoche.
Together, Page and Brin want to ensure each of the spin-off businesses will have adequate funding and suitable CEOs. Each business, including Google, will have its own CEO. Sundar Pichai, Google’s former product chief, has been appointed as CEO of Google. With more than 11,000 employees in town and plans to hire many more in near future, Google plays a significant role in almost all aspects of city management. Sundar has been saying the things I would have said (and sometimes better!) for quite some time now, and I’ve been tremendously enjoying our work together.
Chennai-born Pichai, 43, has been named CEO of the new Google, which Page said will be a “a bit slimmed down”. Sergey and I have been super excited about his progress and dedication to the company. Google as we know it is going to be completely different. Essentially this means nothing for Google users in day-to-day use. Now, Google will be a separately run company without its CEO worrying about those “side projects”. The business started out as a search engine but it grew to control several technology companies as well as two financial businesses. He will now head up Google, which will be a subsidiary to a new company called Alphabet. Google’s health-focused projects, X lab, and Investment and Capital arms will be separate from Google, now under the Alphabet umbrella. Eric Schmidt, formerly executive chairman at Google, will become executive chairman of Alphabet. The Alphabet shares will still trade under the GOOG and GOOGL symbols on NASDAQ.
Wow. Didn’t see that coming late in the afternoon. And, of course, it has myriad other experimental efforts, like self-driving cars, Internet balloons and fiber-optic broadband service.
Obviously, we’ll be learning much more about all of this soon.
After this news came out, the shares of Google shot up by 7% and are now at $708.