Well, it’s true Google, the global search giant, has restructured itself as a collection of businesses, with Google co-founders Larry Page and Sergey Brin, leading the new parent company Alphabet.
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The Silicon Valley heavyweight is changing its operating structure by creating a new holding company called Alphabet. The new smaller Google will be run by Sundar Pichai, Google’s current senior vice president of products. He said Alphabet is “mostly a collection of companies”, the largest of which is Google.
Vehicle leasing giant Alphabet worldwide has said that it is exploring the possibility of any trademark infringement after Google announced on Monday (10 August) that it is to found a holding company called Alphabet.
Alphabet will run Google’s X Lab skunkworks, along with Google’s prototype drone delivery service and other advanced projects, including presumably its self-driving cars and its robotics division. The new structure will allow them to periodically create new projects and then hire others – such as Pichai and Calico CEO Arthur Levinson – to handle day-to-day operations of individual companies.
As per reports from The Guardian, all shares of Google will automatically convert into corresponding shares of Alphabet, which will continue to trade under the stock ticker symbols GOOG and GOOGL.
It’s entitled, “The New Age Alphabet: Google A to Google Z, can you thk [sic] of something for the letter J?”
After completion of the Alphabet merger, Page will become Alphabet’s CEO, and Sergey Brin, who cofounded Google with Page, will become president of Alphabet.
Last quarter, Google posted $17.7 billion in sales, 90% of which was attributed to advertising it sold through search, partner websites, YouTube and Android.
While market experts and other financial commentators had always said that Google does need a tweaking in their system eventually, no one would have ever expected such drastic changes to happen.
Alphabet will also oversee Google Ventures and Google Capital, two corporate investment entities that focus on early- and growth-stage startups. With more than 11,000 employees in town and plans to hire many more in near future, Google plays a significant role in almost all aspects of city management.
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“We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for”, he added. “We do not intend to become one”, said Page on the blog noting that the tech industry is where revolutionary ideas flourish to drive the next major leap for companies. Google shares soared 5 percent in after hours trading yesterday as the news of the restructuring broke.
