The founders of Google have launched a new company in an effort to be cleaner and more accountable.
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Alphabet, the newly formed parent company that will own Google from now on, is not welcome in China, well, at least its website isn’t.
The company’s mysterious 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. The new structure is kind of like the tech version of Warren Buffett’s Berkshire Hathaway Berkshire Hathaway, which has a host of operating segments alongside its insurance operations and investment portfolio.
Under the change, which was announced on Monday, a new parent company will be created called Alphabet.
The move will also allow Google to give some of its top executives weightier-sounding titles.
Another reason they went for the name, he adds, is “that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!” With more than 11,000 employees in town and plans to hire many more in near future, Google plays a significant role in almost all aspects of city management. Sundar Pichai, formerly VP at Google where he oversaw Android, Chrome and Google apps, will become CEO of Google.
Google has for years been the leader in Internet search and has turned advertising linked to those searches into a highly lucrative business.
CEO Larry Page may be soon leaving the Google building, but even as he dreams of running Alphabet, Page still found time to express some love for the oft-maligned Google+. It will be a holding ground for other companies acquired by Google, enabling the company that is known the world over for its Internet presence to work on other technologies without impeding development in its core fields.
Essentially, the businesses that make Google all its money.
Meanwhile The New York Times said the name Alphabet already is in use by numerous companies, including BMW, for a subsidiary that provides services to companies with vehicle fleets.
Pichai thanked Microsoft CEO Satya Nadella, Apple Chief Tim Cook and others who congratulated him on his promotion. However, those shares will still trade as GOOGL and GOOG on NASDAQ.
Google just announced a major overhaul of its corporate structure.
As examples of businesses “far afield” Google is pursuing, Page cited the company’s health efforts.
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“There is certainly a strong case for the move providing more protection to the Google brand”.
