Alphabet will own Google plus a variety of other companies. “We believe this allows us more management scale, as we can run things independently that aren’t very related”.
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“Bearing this in mind, it makes sense for such a drastic restructure to ensure that the individual entities do not grow too large and sluggish to respond to the ever changing landscape”.
The new structure could make it easier for Google Inc.to sell off some of its unrelated businesses, or buy new ones, analysts said. The umbrella company will have Larry Page as CEO and Sergey Brin as its president.
Google CEO Larry Page is an ambitious man. Not satisfied with founding one of the world’s biggest and most influential technology companies, he’s now plotting to spend billions of dollars in Google profits on new ventures that are far removed from Google’s original search business.
There’s some good news and some bad news here for Google. Meanwhile, longtime Google executive Sundar Pichai will become CEO of Google and run its search engine, online advertising operation and YouTube video service. “We do all of our business online, and Google could really affect us”, said Jennifer Blakeley, who in 2008 registered Alphabet Photography as an online retail store selling printed photos of buildings and natural formations that look like letters.
Google has been aggressively expanding beyond Internet search in recent years, from Google Glass and its Project Wing drone initiative to self-driving cars.
There have also been mutterings about a lack of information about the amount of money being invested into the new ventures, and the new structure will inject some more transparency into the company’s affairs. So we are creating a new company, called Alphabet. That will include divisions like Life Sciences and Calico, which tend to focus on moonshot goals such as developing glucose-sensitive contact lenses or extending the human lifespan. Google co-founder Page is the CEO of Alphabet, while fellow co-founder Sergey Brin is the president.
The move will see its constituent parts given greater independence and offer investors a clearer window into its smaller companies but not to the degree that some may be hoping for.
In his blog post, Page explained in that “in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant”.
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According to Page, it boils down to a question of focus and clarity.
