Because Google has expanded far beyond its original core purpose-online search-the company announced yesterday that it is creating a new entity, called Alphabet. They cleverly made their new website http://abc.xyz. Google co-founder Page is the CEO of Alphabet, while fellow co-founder Sergey Brin is the president.
The world has relied so much on Google that the news of the powerful company transforming into a holding called Alphabet has kept everyone looking out for the next events.
Google’s Executive Chairman Eric Schmidt wrote on Twitter: “Really excited about the vision and brilliance of Sundar… he’s going to be a great CEO“.
Alphabet will be a giant conglomerate, of which the largest will be Google itself.
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.
“Alphabet is mostly a collection of companies”. And, like any good holding company, it’ll probably help them pull off some more tax tricks to cut that bill down, too.
As part of the change, longtime Google CEO Larry Page said he would hand over the reins of the company’s mainstay search-engine division to the company’s product chief, Sundar Pichai.
11 years ago, Page and Brin wrote in the original company founders letter that Google is not a conventional company and they do not intend on being one.
Businesses that will operate separately under the Alphabet umbrella include Calico, which Google established to conduct health research in 2013; Nest, which Google acquired in 2014; Fiber, which is building high-speed broadband networks in several cities; and Google X, the research lab responsible for Google’s self-driving vehicle venture and previously developed its controversial Internet headset, known as Glass. That should provide a bit more clarity to investors, since Google’s core Internet business will now be split out into its own segment.
Page adds he wants each Alphabet company to develop their own brands and have more independence.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google”, said Google chief executive Page in a blog post titled “G is for Google” on Monday.
2004: A few months after introducing Gmail, Google holds its first public stock offering.