While this looks a little clumsy, the new move by Google, i.e., the formation of Alphabet Inc., is actually separating the popular search engine with ad revenues from the ventures that have yet to pay off. Google’s core business will be left in the hands of longtime executive Sundar Pichai, whom many have expected to succeed Page. In other words, business is good.
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“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google“, he said in the blogpost.
It seems Google should have done some more Googling when it came to picking a name for their new holding company, Alphabet Inc.
Say goodbye to Google. As CEO and President of Alphabet, Page and Brin will oversee Google as well as affiliated companies like the life-extension project Calico and a drone delivery venture called Wing. If so little is changing other than the name, why bother with the transition? The company has a well documented history of killing off products that it deems “non-core”.
The automaker said it hasn’t been in contact with Page or Brin about the name, and confirmed it is examining whether to take action over trademark infringement. At the time of writing, the website for BMW’s Alphabet is generally very unresponsive and slow. 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. And we haven’t stopped there.
Unfortunately for Sundar, Google now faces more aggressive competition than ever before. Alphabet now has the ability to promise nervous CEOs of a potential acquisition that he or she can remain at the helm of the company, making it more likely that the acquisition will succeed.
“Sergey and I are seriously in the business of starting new things”, Page wrote in a blog post.
That also gives shareholders an advantage. This new parent company is called Alphabet.
While the structure of Alphabet isn’t unusual, the timeline to create such a massive conglomerate is nothing short of breathtaking.
It’s the umbrella company of Google.
The bigger plan will start to become clear over the following year or two. At the time, it even disrupted that process, holding an auction-style initial public offering so more retail investors could buy shares.
Alphabet will replace Google as the publicly traded entity.
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Eric Schmidt, the executive chairman at Google, will transition to Alphabet with the same title, Google said. The company’s Alphabet is a branch of BMW that offers packages to different companies with vehicle fleets. Another meaning of the name is “alpha” being known in the business world as an investment term which means above average profits.
