If you thought Google was a behemoth of technical ingenuity and prowess, prepare to meet it’s maker. In a stunning announcement, Google has created a new company that will be the parent for Google and all its ambitions.
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Google co-founder Larry Page took to the stage to announce that a new parent company, called Alphabet, would be the umbrella for all things Google and beyond. Taking time to speak for both himself and Google’s other co-founder Sergey Brin, Page called Alphabet “a very exciting new chapter in the life of Google.” Its a shrewd business move that also solidifies Google’s – errr Alphabet’s move from a Search, then Internet, then Technology company into a larger, further reaching corporation.
Under the Alphabet umbrella, the company will include Google, and all its spinoff efforts, such as it’s Life Sciences divisions.
The infamous ‘Google X’ will become its own company apart from Google, and so will its Longevity Research department, Calico. Google Fiber and Nest will also become their own companies, as well as Google Ventures (now just Ventures’) Capitol and Sidewalk. Even Google’s Drone-delivery service Wing will be its own company.
What does that leave for Google? According to the SEC filing:
“Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the ‘Google business’).”
Alphabet’s creation looks like a move that will change Google’s structure and growth now and for the future. Page took the time to explain that Google itself will become a slimmed down, more efficient machine as it’s spinoff holdings become companies in their own right. Page also announced that Sundar Pichai, previously the head of Android, Google Chrome and Apps will become the CEO of Google. This means, of course, both Larry Page and Sergey Brin are moving to hold the top positions at Alphabet and the CEO and President respectively. Google’s stock will now be Alphabet stock and from here it gets even more confusing.
So, whats up with the name?
“We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!” – Larry Page in a posting on Alphabet