The new company named Alphabet is a collection of companies, the largest of which is Google, and will oversee all of the smaller companies as they continue to grow.
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In a blogpost on Monday, Larry Page, the former Google CEO announced that Google is reorganizing its entire digital and physical businesses under a single umbrella structure called “Alphabet“. Meanwhile, Page and co-founder Sergey Brin are becoming the new CEO and president at Alphabet.
Google co-founder Larry Page said the name Alphabet was chosen for two reasons. “I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President”.
According to a filing with the U.S. Securities and Exchange Commission (SEC) from Google Inc., the Google business will include the search engine, ads, maps, apps, YouTube and Android, among other related technical infrastructure.
The aim of the operating overhaul is to allow Google to focus on developing its own products, while enabling other Alphabet subsidiaries with the independence to further their own brands.
Page signaled that he wants to give more authority to CEOs of the companies that will be part of the new entity known as Alphabet.
Apparently, BMW was not told about Google’s Alphabet and did not receive any offers to buy the Internet domain or the trademark. That’s a lot of change for one of the most influential companies in the world.
Page also goes on to say, “We will rigorously handle capital allocation and work to make sure each business is executing well”, noting, too, “This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google”.
“For example, if a unit is doing well or badly they can dial it up or down, they can form partnerships or different companies”, said Kay, the Endpoint Technologies Associates analyst. Google is now one of the subsidiaries under Alphabet’s wing and has acquired a new CEO, Sundar Pichai. Now Page, still Google’s top-most leader, has added his support in only his fourth public post of 2015 on the service.
Alphabet will run Google’s X Lab skunkworks, along with Google’s prototype drone delivery service and other advanced projects, including presumably its self-driving cars and its robotics division.
“Alphabet is mostly a collection of companies”. However, those shares will still trade as GOOGL and GOOG on NASDAQ.
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After this news came out, the shares of Google shot up by 7% and are now at $708.
