Meet Alphabet – Google’s new parent company

Google CEO Larry Page has announced a restructuring of the Internet giant in which Sundar Pichai will become the new CEO while he and Sergey Brin will run a new umbrella company called Alphabet.

Google Inc made clear in its announcement on Monday that in creating a parent company called Alphabet Inc, it was not intending to build products and brands under that name.

“This structure allows Page and co-founder Sergey Brin to keep investors happy and continue to have their toys like Google Glass and robot cars”, said Simpson.

Google has a new CEO, Sundar Pichai, who replaces Page in the top spot.

Alphabet will house the main Google businesses such as search, maps and YouTube, along with businesses managed separately such as Fiber, Nest and investing arms like Google Ventures.

For example, Google’s foray into the life sciences with glucose sensing contact lenses and its focus on extending human life with Calico will not be part of Google. Indeed, as I think Page himself would acknowledge, most of Google’s ambitious bets are unlikely to pay off at all. The company will continue to trade under the GOOG and GOOGL symbols on the Nasdaq. The comparison is acceptable enough that Google buried an Easter Egg link to the fake Hooli website in its announcement of Alphabet.

Pichai, who was named overall chief of Google products last fall, is viewed by many as a potential successor to Page.

Of course, under this organizational structure with the newly formed company Alphabet at the head, the Google Pichai will be managing is somewhat smaller in scope than the one he rose through the ranks of.

Larry Page will become the CEO of Alphabet.

The mechanics of the Alphabet move may be as confusing as Google’s stock split, as the company laid out in a filing with the Securities and Exchange Commission on Monday. Page notes in a blog post that when Google was founded, its mission was not to be a conventional company. “We believe this allows us more management scale, so we can run things independently that aren’t very related”. It has restructured the company and everything will now report up to “Alphabet” a new corporate name. “I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as president”.