Larry Page will now play the top role at Alphabet while Sergey Brin will act as president of the newly formed entity. All the new companies will have a newly appointed CEO.
Google, which will still feature Google Maps, YouTube, Chrome, and Android, will be run by new CEO Sundar Pichai and will become a subsidiary of Alphabet. The company just created a new holding company called Alphabet that will wholly own Google.
We are not intending for this to be a big consumer brand with related products – the whole point is that Alphabet companies should have independence and develop their own brands”,
said Page in the announcement. “Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related”. In addition to the hundreds of small businesses with Alphabet in their names, there are now 103 trademark registrations in the United States that include the word “alphabet” or some close variation, according to a database search of the US Patent and Trademark Office.
The radical organizational shift is something similar to the way companies like General Electric are organized, with a command center of sorts that’ll act as the Central Processing Unit to oversee and manage activities such as finance and other independent business activities. Another is Wing, “a drone delivery effort”. All shares in Google, Inc. will be transformed into shares into Alphabet, Inc. The company will continue to use the Nasdaq ticker symbols of GOOGL and GOOG. The reorganization will give each business more autonomy and change the way the company reports its financials.
No one saw Larry Page, Google’s CEO announcing that they were sort of, kind of, splitting Google into two companies, Alphabet and Google.
Jenna Pitcher is a freelance journalist writing for IGN.
Alphabet doesn’t spell “goodbye” for Google, even though numerous more exciting projects are no longer under its robotic umbrella. Should Alphabet decide to take any of its subsidiaries public, investors will also have the opportunity to invest in the these new companies as well. While it had maintained leadership in Internet search and had been benefiting from web advertising, analysts said that its shares showed that the company is struggling after reaching an all-time high in 2014. It represents language, “the core of how we index with Google search”, and because Alpha-bet means “investment return above benchmark, which we strive to do”. One is called Life Sciences, which he described as working on the glucose-sensing contact lens, and Calico which is focused on longevity.