Google Establishes Parent Company Alphabet

Meanwhile, Page and co-founder Sergey Brin are becoming the new CEO and president at Alphabet.

Despite the now bare appearance of http://abc.xyz and various reports about the new parent company in Chinese media, censor-tracking website Greatfire.org confirmed that the website 100 percent blocked in China.

Google CEO Larry Page will become CEO of the new entity or else new field, with his co-founder Sergey Brin to be as president.

According to Page, Alphabet signifies a collection of companies, the largest of the lot being Google. Since every company under Alphabet will have its own CEO, Page and Brin’s job will be to ensure they get the help they need to go from strength to strength.

Also, will the non-Google units be operationally capable to generate enough revenues to fund themselves and newer projects, will be the big question? The Internet giant has been eyeing the health care industry for quite sometime now. There is Nest, the smart-home operation, as well as Google Ventures, its venture capital arm.

Google’s move is the most significant step by a Silicon Valley giant to get a handle on the sprawl of businesses that it has entered, an issue that increasingly afflicts other technology companies such as Facebook and Amazon. The company they represent, however, will be more than just a search company.

The company’s 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.

In 2001, investors insisted that Eric Schmidt, who had been chief executive of Novell, take over the role to bring on some adult supervision.

This unlocks Alphabet’s capability and offers flexibility to innovate at afaster pace in newer areas but also for its wholly owned subsidiary Google Inc in search and advertising cloud space. Pichai was named Google’s head of product last October, which put him in charge of the company’s key businesses like Android, search and Chrome. Google’s corporate motto is famously “don’t be evil”, although that hasn’t stopped the company from getting into strife with the European Union, which has been trying to break up Google for years, over its market dominance, or being criticised by various countries (including Australia) for not paying much tax. Each subsidiary will be independently managed, rendering the business structure “cleaner and more accountable”, he explained. That mega-company is called Alphabet, and it’s ready to become one of those shadowy, quiet corporations that appear up at the very top of those brand flowcharts anti-capitalists love passing around.

Page stepped back from managing the day-to-day responsibilities of many of Google’s core products when he promoted Pichai late previous year.