In the world of the most powerful technology companies, Google just announced publicly traded new parent company that will house all of its divergent businesses; it will be known as Alphabet Inc.
The company will be run by co-founders of Google Larry Page and Sergey Brin, Eventually Google will evolve in as ancillary of Alphabet with top Google executive Sundar Pichai as its brand new CEO.
The founders wanted to come up with something accountable and cleaner. The following news is seems to have Wall Street taken by surprise as amazingly after trading hours Google GOOG shares hiked up by 6%.
New Structure for Google
From now onward President and CEO of Alphabet, Brin and Page will take care of Google as well other companies that are affiliated like WING- Delivery of drone venture and Calico- life extension project.
Alphabet will control former company’s early-stage operating funds, dubbed Ventures and Capitals. This will establish new organization and each operation will have its own leadership and CEO, meanwhile Google and the new CEO, Sundar Pichai, will retain the command over ads, maps, and search, YouTube, Android and the Google Play Store.
The new venture will play as a conglomerate; the largest one in this will be Google. Google will be further economized, sparing the companies that are not part of the internet core business; it will encompass more experimental and newer business strategies like gadget maker of IoT, the high speed fiber-optic project based on internet and Calico.
Financial restructuring is significantly involved in this reorganization. The company’s shares will now be traded as the shares of Alphabet Holding Company. For financial business there will be division in two parts: Google Ventures and Capital that will deal with private equity. Google X, dealing with company’s experimental laboratory, planned to run by Brin.
Larry page wrote in his blogging page,
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making the incremental changes, but in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”
Fast Facts about the New Re-Organization
1. Google will be economized in a smaller version.
2. Alphabet becomes a conglomerate, which includes Google.
3. The new company will have X Lab and it will aim on more ambitious projects.
4. Alphabet will be run by Larry Page and Sergey Brin, whereas, Google will be under the new CEO, Sundar Pichai.
5. Shares from Google Inc. will trade under the name of Alphabet Inc.
Why new company?
Initially started as a search engine, Google has crossed all the hurdles since then and has come along a very long path. The company acquired several popular internet stuffs like Android, Gmail and YouTube. Recently they have indulged in projects like Project loom, Project Makani, self-driving cars and anti-aging technology.
The founder duo believes that such projects have become too significant. Various projects require their own type of leaders, cultures and resources. Creating Alphabet as a conglomerate will look after different strategies and ventures while permitting each to work independently.
They wish that diversifying the Google Empire into different parts will make it easier for them to live outside their convenience zones and push them to strive harder.
All you need to know about the new CEO
Sundar Pichai has been working for Google since 2004. Since last year he has been top deputy for Page. He managed several products since he joined Google. He led the team for Google chrome that was launched in the year 2008 and instantly become the most popular browser in the world; this achievement gave Pichai a big boost in the tech industry.
Later on he was made an in-charge of Gmail and Android along with two other successful products by Google.
Last year when he took control over almost all products from Google, he was immediately placed in the line to succeed Page. He is a universally liked figure within Google including Page himself, who bets high hopes on him.
How will this affect us as a user?
Do not worry people! In the short run, it won’t have any effect on us at all. The Google products that we use will be kept under the same umbrella and will continue to proceed and operate in the same way it has always.
Google will soon trademark the Alphabet word and it will start charging fees to schools for words per- use! Shocked? Well don’t worry, I am just kidding, Google will certainly do no such thing.