Sundar Pichai, will serve as Google’s new CEO and the largest of those companies will be a “slimmed-down” version of the old Google. “So it’s sort of way to separate, at least for investors, this is the Google that you’re familiar with, and this is our profitable arm and this is where we’re making investments for the future”.
Google reported more than $14 billion in profit last year, but not all its operations are equally lucrative.
Page writes all shares of Google will automatically convert to the same number of shares of Alphabet.
One can only assume that before Larry Page and Sergey Brin chose Alphabet as the name for their new holding company, they Googled it.
Possibly because of interest generated by Google’s announcement of Alphabet on Monday, the alphabet.com website used by the BMW subsidiary appeared to be overloaded on Tuesday.
Analysts said the company’s reorganization with the addition of Alphabet could not only make financial reporting clearer, but may also make it easier for Google to buy and sell individual businesses. With a cutesy URL (http://abc.xyz) and Brin at the helm as president, Alphabet will seek to live up to its name as an entity that contains the innovation building blocks upon which all Silicon Valley language is built.
“Alphabet is about businesses prospering through strong leaders and independence”.
The company’s X lab, responsible for developing initiatives such as drone delivery business Project Wing, will now operate under Alphabet, as will its Life Sciences division, which is developing a glucose-sensing contact lens.
But its shares have struggled since hitting an all-time high in early 2014 and it has little to show for ventures in other areas: self-driving cars, Google Glass, Internet balloons, health care, Google TV, mobile payments, home automation and its Google+ social network, among others. Android, YouTube, search and ads will remain part of Google Inc.
“We continue to think an era of more disclosure and cost consciousness… is positive for Google”, said technology specialists Pacific Crest. It will also include more radical efforts like Calico, a company that’s trying to increase human lifespans. Moreover, former Google Executive Nikesh Arora, who is now President of Japanese telecom major SoftBank, is likely to be its next CEO as SoftBank’s founder and chief executive Masayoshi Son has chosen Arora to be his successor. The same applies to new machine learning processes like Google Photos and Google Now.