The new stand-alone companies will have more freedom to take risks. In its bid to become a holding company through Alphabet, Google not only made one of the biggest promotions in its history but it has also emphasised its ambitions to become more diversified.
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Analysts and investors have long sought more detail on Google’s capital spending and cash flow, as well as the financial performance of YouTube and Android.
Google executive chairman Eric Schmidt congratulated Pichai Monday tweeting, “Really excited about the vision and brilliance of Sundar. he’s going to be a great CEO!” He will now head up Google, which will be a subsidiary to a new company called Alphabet. Google, which started in 1998 with a newfangled web search algorithm, is today considered a leader in dozens of different fields, including self-driving cars, drone package delivery and anti-aging research.
Google said on Monday that it would split into two reporting companies under a new holding company called Alphabet. Companies that are not part of its core internet business will be excluded, such as gadget maker Nest, Internet project Fiber and Calico.
“It’ll be necessary to examine the legal trademark implications”, a BMW spokeswoman told German business magazine WirtschaftsWoche.
This traditional move may be signaling a new era for Google.
Declaring that Google is “not a conventional company and we never intended to become one”, Page explained that Google thrives on making “smaller bets on areas that might seem very speculative or even unusual compared to our current businesses”.
Google co-founders Larry Page and Sergey Brin will run Alphabet – Page as CEO and Brin as president. So, instead of calling everything Google, each division will its own separate company that all report to Alphabet. Alphabet gives Google an ideal position to expand into other ventures.
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As Googlers woke up to Alphabet on Tuesday, the mood at its India offices was mostly upbeat, with employees joining in the applause about Sundar Pichai taking the reins at Google. However, the company will continue to trade on the Nasdaq under the labels GOOGL and GOOG ticker symbols. The products you use everyday like search, maps, YouTube and the Android operating system will retain the Google name. “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search!” he said.
