Google: Now Restructured Under New Umbrella Company Called Alphabet
Google, one of the most successful and popular companies in the last decade, is now restructuring itself under a new umbrella company called Alphabet. Larry Page, chief executive officer of Google, and Sergey Brin, co-founder of Google, will be serving as the leading executives that will oversee companies bunched under the new Alphabet parent company. The largest company under Alphabet will serve as a streamlined version of the old Google entity, and Sundar Pichai, Page’s own trusted protege, will become the new chief executive officer of that company.
As explained by Page via a rather long blog post, he and Brin are continuously trying to jump start new beginnings, and the creation of the new Alphabet umbrella company is their way of hitting a restart button on the whole Google enterprise in order to achieve even better things and even inspire more innovation.
Google had started out as a search engine, but over the years, the company has expanded into something more. Its search and advertising division still ranks among the most dominant business models in the world, raking in over $50 billion each year. But we now live in a world where change happens so fast, and in order to keep up, even companies as successful as Google must evolve too. Thus, the company has found itself venturing into the manufacture of smartphones, wearable devices, and even cars that run without drivers.
The creation of Alphabet though, is a bold new step. Apart from taking Google under its fold, Alphabet will also oversee Google X (the company’s research and development lab), Calico (Google’s effort to increase the lifespan of mankind), and Life Sciences (projects that include smart contacts for patients stricken with diabetes). As for Android the mobile operating system and YouTube the most popular hub for videos in the Internet -- they will remain under Google.
One of the winners in this latest development is Pichai. For the past year, Pichai has increasingly been becoming a familiar and visible face for Google, and with his promotion, he now takes on more responsibility especially in steering the operations of the now slimmed down Google. Page certainly thinks Pichai is up to the task.
Alphabet Inc. will now replace Google Inc. as the publicly traded entity. However, the company will still continue to trade under its usual tickers, GOOG and GOOGL. Upon hearing the news, investors reacted favorably, sending the stock up over 6 percent in after hours trading.