Eric Schmidt, the current Google chairman, will be executive chairman of the new holding company.
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The move appeared to be an attempt to let the search engine giant focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments. “I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as president”. As part of a restructuring, Alphabet acts as an umbrella company with a collection of companies beneath it, the largest being Google.
But the alphabet prediction is presumably the result of good luck and coincidence, rather than prediction or insider knowledge. They tried to hire him once about 3 years ago and got very close.
But, he said, “Google is not a conventional company”.
These companies include Life Sciences, which is developing a glucose-sensing contact lens, and Calico, whose work is focusing on the human lifespan and ways to increase longevity.
Sundar Pichai, now Google’s senior vice president in charge of products, will become the CEO of Google. Buffett’s conglomerate owns more than 80 subsidiary companies and lets each operate with substantial independence. That would be Sundar Pichai, who has had product and engineeing responsibility for Google’s Internet businesses. Furthermore, former Google Ventures and Google Capital will now become a part of Alphabet, responsible for funding internal and external businesses, acquisition of talent (tech / products/ companies) into Alphabet as well as Google itself. Sundar Pichai, meanwhile, will take over as CEO of Google. Shareholders had been growing increasingly anxious about Google’s funding of “moonshot” investments that may never pay off. Since 90% of Google’s sales came from advertising, Page was criticized for not devoting more of his time to search.
Google co-founder and CEO Larry Page announced the creation of the new parent company for Google and all of its various offsprings. “One near-term concern is that this new structure looks likely to also lead to more resources going toward non-core initiatives (though we think this is a positive for the long term)”, wrote analysts at Australian investment bank Macquarie in a note on Monday. As such, there will be a new reporting structure starting from fourth quarter 2015, where every business will report revenues and expenditures differently.
Alphabet Inc. will replace Google Inc.as the publicly-traded entity, the company said.
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BMW today said it was looking into whether Google infringed any trademark rights after the Silicon Valley-based group set up a new company called Alphabet, which is also the name of a BMW subsidiary.
