Mr. Page, in a blog post, announced the formation of the new parent company Alphabet, of which he will be the CEO and Google co-founder Sergey Brin will be its President. One is called Life Sciences, which he described as working on the glucose-sensing contact lens, and Calico which is focused on longevity.
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The new structure will allow management to “scale”, since the company can independently run “things that aren’t very related”.
One can only assume that before Larry Page and Sergey Brin chose Alphabet as the name for their new holding company, they Googled it.
Google announced a corporate restructuring on Monday, forming an umbrella company called Alphabet and naming a new CEO to the core business of Google.
Pichai, who was previously in-charge of product and engineering for Google’s Internet businesses, will be the CEO of the “slightly slimmed down” Google.
The reorganization also cements the importance of Pichai, who is viewed by many as a potential successor to Page. Alphabet will be replacing Google as the publicly traded company on the stock market. “Alphabet is about businesses prospering through strong leaders and independence”, Page wrote.
“Google itself is also making all sorts of new products, and I know Sundar will always be focused on innovation-continuing to stretch boundaries”, Page said.
Meanwhile The New York Times said the name Alphabet already is in use by numerous companies, including BMW, for a subsidiary that provides services to companies with vehicle fleets. Ventures and Capital, Google’s investment division, will function as a separate subsidiary as well.
“They are aware that they’ve got this hodgepodge of companies,”said Mr Roger Kay, an analyst at Endpoint Technologies Associates”. The Google unit will include the search engine, search ads, maps, apps, YouTube, Android and related technical operations, according to the filing.
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!” However, the company will continue to trade on the Nasdaq under the labels GOOGL and GOOG ticker symbols.
“From a financial perspective, we believe the Street will soon be better able to evaluate the true performance of core Google, and may also become more accepting of Google’s ongoing investment in emerging businesses such as Nest, Fiber, and driverless cars”, Anmuth said, maintaining his overweight recommendation and US$800 price target.
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There’s no doubt that Google has stretched its wings in the past-and has done so only to soar to seeming world domination in certain areas.
