Page will serve as Alphabet’s CEO, while Brin will serve as its President. The largest of these companies is Google. The goal of breaking out these companies under Page and Brin is to allow each of them to focus more on their own areas independently. Second, the name can be broken apart into “alpha” and “bet”, with the former meaning an investment return that’s above benchmark.
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The full details of the split remain to be seen. Google’s current directors will become directors of Alphabet. The full list of the Google/Alphabet split is not yet available. Things like Google Capital and Google Ventures will now simply be renamed Capital and Ventures respectively and fall under Alphabet.
Each company under Alphabet will have its own CEO, with Page and Sergey providing assistance as needed.
Page will be the CEO of Alphabet, and Brin will be its president. He’s adept at understanding Larry Page’s vision and translating it into practical business decisions and getting different parts of Google’s often fractious organization to work together.
Google just rocked the world with some light news on a Monday. “I feel very fortunate to have someone as talented as him to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations”.
“Sundar has been saying the things I would have said (and sometimes better!) for quite some time now”, Page wrote in a blog post announcing the changes. All owners of Google stock will still continue to trade on Nasdaq with the classes GOOGL and GOOG, regardless of company name.
“Our company is operating well today, but we think we can make it cleaner and more accountable”, he wrote. Recent launches like Google Photos and Google Now using machine learning are unbelievable progress. (Pichai had been rumoured to be in the running for the vacant position of Twitter CEO.).
“For Sergey [Brin] and me this is a very exciting new chapter in the life of Google – the birth of Alphabet”. The stock is up 25 percent this year, with much of the gains coming after the company reported quarterly results last month. Buffett is CEO of Berkshire Hathaway, a conglomerate that owns more than 80 subsidiary companies and lets each operate with substantial independence.
Yet, the move positions Google as far more traditional than disruptive.
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Two examples given at the inception of Alphabet are Life Sciences and Calico.
