After D.R. markets shut on Friday, Alphabet will exchange Google because the publicly traded firm that may home Google’s search and Web promoting companies, maps, YouTube and its “moonshot” ventures resembling driverless automobiles.
Alphabet will oversee the operations of other businesses/moonshot projects including Calico, Google Capital, Google Ventures, Google Life Sciences, Google X, Nest Labs, and Sidewalk Labs.
The introduction of Alphabet hasn’t resulted in a change to the company’s official tickers; those still remain GOOG and GOOGL. Page said that by constructing broader and general code of conduct, Alphabet is more flexible to the needs of its subsidiaries in case there is a need to formulate their own rules and organizational culture. Each share of Google shall be routinely transformed to Alphabet inventory.
The goal: to free Google cofounder and CEO Larry Page up from running the business day-to-day so he could brainstorm the next Google.
Starting from the company’s fourth quarter in January next year, Alphabet is to have two reporting units – Google and all other Alphabet businesses taken as a whole.
While Google’s motto has always been “Don’t Be Evil”, Alphabet’s could become “Do The Right Thing”. Sundar Pichai is to head Google.
Quirkier Google rules such as being a “dog company” and discouraging feline visitors on the grounds that they would be stressed out have been abolished, presumably to allow each subsidiary to create their own company culture. In a memo to investors, Page said he wants to make the company “cleaner and more accountable”. This is driven by a few important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover.
Each company underneath Alphabet will be focused on issues that are “afield” of Google’s main Internet products.