By the end of the fourth-quarter, Alphabet promises to provide a separate financial report for Google and its other businesses. “While all of these tech companies began as entities focused on one main business, online bookselling or a social network, for example, many have diversified over the years into numerous side businesses including cloud computing, photo sharing and even satellites”.
Advertisement
“They are aware that they’ve got this hodgepodge of companies”.
For at its heart, Google is an engineering company. Well, it’s now a little clearer.
With the reorganization, 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. “We do not intend to become one”. All Google shares will automatically convert one-to-one to Alphabet shares, with Google as a wholly owned subsidiary. We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation. So long live the new Google!
So what will form Alphabet?
“Our company is operating well today, but we think we can make it cleaner and more accountable”.
This all sounds exciting, but has Alphabet kicked off on the wrong foot? Its website is abc.xyz, and it’s as bare-bones as they come. Now, Google will be a separately run company without its CEO worrying about those “side projects”. In fact, despite creating a search engine it was only around 2000 that Google pivoted in the direction of trying to make money through advertising.
This isn’t goodbye, Google will still continue to thrive and maintain it’s positioning as the biggest earner, but will now sit under the newly set up Alphabet inc. umbrella company.
Page and Brin will remove themselves from the day-to-day running of Google and will operate as CEO and president of Alphabet respectively.
“We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for”. Now it is a slimmer organisation led by CEO Sundar Pichai that is a subsidiary of a new giant called Alphabet Inc. Experts believe that Indians’ focus on good education and ability to work in hard situations are aiding to this rising trend and more and more Indians could rise to top positions at global companies in near future.
His star rose from the get-go where he oversaw the development of vital apps like Gmail and Google Maps as well as the VP8 video codec and the new video format WebM.
“I remember the early days when Google wasn’t so big (well it was still massive), in those days Google would have awesome parties where Larry and Sergey would just mingle with search marketers. Sergey and I have been super excited about his progress and dedication to the company”, Page said about him in his blog.
I have added shares of GOOGL this morning and hoping to add calls if the stock rests/comes in a bit. He started off in Google working on their Toolbar followed by leading the famed browser Chrome in 2008.
Getting more ambitious things done. Now is Alphabet a wise move?
Advertisement
San Francisco: Google unveiled a surprise corporate overhaul Monday, forming a new parent company dubbed Alphabet to include Internet search and a handful of independent companies.
