Google recently, has surprised the world by creating a holding company called “Alphabet”, under which all the other Google owned companies have been pooled. “I am really excited to be running Alphabet as the CEO with help from my capable partner, Sergey, as president“.
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The company’s 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. However, Google does have automotive connections in the form of its Android Auto connected cars technology and its research into self-driving vehicles.
Yesterday came the big news that Google was reorganizing itself, and putting the company, and its other properties under a new umbrella called Alphabet. No big deal. If there’s one company that can find the fountain of youth, it’s one that owns Google.
Page said the companies would all retain a great deal of independence and be run by strong CEOs.
According to Reuters, the move appeared to be an attempt by the search engine giant to focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments.
Ville Hellman, head of development at digital agency Rawnet, said: “Google has extended their operations to cover a lot of new fields for several years now, and some of the new fields it is entering are only very loosely related to their core business“. The new Google will continue as the consumer-facing brand and will run all the products you’ve heard of, including search, Android, YouTube, Maps and Google Apps.
2004: A few months after introducing Gmail, Google holds its first public stock offering. Alphabet will be a “collection of companies” that generally fall outside Google’s main sphere of interest.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google”, explained Brin, in a blog post Monday. The site claims that Google restructuring as Alphabet will allow it to venture into such industry while assuring long-term growth. With digital advertising having peaked, Google is clearly looking for future avenues of business away from search.
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What is not entirely clear at this point and quite likely had a major influence on Google’s decision to become Alphabet will be the regulatory-and importantly, the tax-treatment for the holding company.
