Not one to shy away from radical moves, Google announced yesterday that they will now be owned by company simply known as Alphabet.
The move was announced by former CEO of Google, and current CEO of Alphabet, Larry Page. “What is Alphabet? Alphabet is a collection of companies, the largest of which, is Google,” Page wrote in his letter to investors. Page believes that this will allow Google to focus more on their core offerings and become more efficient, while permitting more unique ventures to thrive under the autonomy of Alphabet.
Under the restructuring, Google co-founder Sergey Brin becomes the President of Alphabet, and Sundar Pichai will take over for Page as CEO of Google. Page and Brin will still have a hand in overseeing Google, but Pichai will relinquish his role as SVP of products and take over the day-to-day operations.
For a number of years, Google has been trying to take on a wide array of projects from robotics, to autonomous cars, to even attempting to reign in aging. By allowing these organizations to be more autonomous, they ensure that they can get the resources and maintain their vision without major impact on Google’s financials.
Additionally, this move allows Alphabet to make more multi-billion dollar acquisitions that Google, as an established brand might have hesitations making. Not having to worry about how an acquisition meshes with Google’s brand, will allow Alphabet more freedom in future developments. It also opens up more executive-level positions within the organization, which will allow Alphabet to prevent their talent from being poached by other technology companies.
To avoid confusion for investors, all shares of Google will be automatically converted over to the same number of Alphabet shares. However, Alphabet will provide Google’s financial information separately in Q4 of 2015.
The news is still very much in its infancy, and the complete ramifications of this move have yet to be revealed. But this is a very pivotal move in the tech world, and it will be exciting to see what it means for the future of the Googleverse.