Google makes big changes to how it is structured, including forming a new parent company, changing the finance structure, and naming Sundar Pichai as the new CEO of Google.
The company is reorganizing under a new umbrella structure called Alphabet. As part of the move, Larry Page, Google’s co-founder and CEO, will take over as CEO of Alphabet (the company’s URL will appropriately be abc.xyz). And Sundar Pichai, Larry Page’s top deputy at Google, will take over as CEO of Google.
Larry Page wrote in an announcement on Monday titled “G is for Google” as…
Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.
So, who holds the position of chairman? Eric Schmidt. Yes, He will be the chairman at Alphabet Inc. In fact, he digs the new name:
I think the Alphabet name is Awesome. http://t.co/2bqtPEjoQH
— Eric Schmidt (@ericschmidt) August 10, 2015
Larry page continued :
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity).
So, Google is now part of Alphabet Inc. and the co-founders want to expand themselves to the spheres other than search business. In the announcement, Larry Page says that he and Sergey are seriously in the business of starting new things.
This is no mere rebranding. As Page writes, “Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet.
Alphabet will be comprised of Google, Google X lab, Nest, Calico and other ventures. Alphabet will be acting as a parent entity and Google will be reporting to it with its new CEO Sundar Pichai.
This probably mean that in the future, many new services might come from Alphabet …and only designed to operate in partnership with Google, rather than for them.
Read more about Alphabet and Google here in Larry Page’s blog post and share your opinion how did you liked this move by google in comments below.
Source : Google Blog.