Less than a day after Google revealed that it would become a subsidiary of a new holding company called Alphabet, users were barred from accessing its website in China.
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BMW owns both the Internet domain Alphabet.com (which may explain why the domain for the new company is, instead, abc.xyz) as well as the trademark Alphabet, which is now the name of a BMW subsidiary that provides services to corporations with vehicle fleets.
Mr Page will become chief executive of Alphabet, with senior vice president Sundar Pichai becoming CEO of Google.
Alphabet will replace Google as the publicly traded entity. He stressed upon the fact that by creating a separate holding company in the form of Alphabet, it’ll allow them to focus exclusively on more disruptive and ambitious technology-driven projects, giving them the opportunity to streamline funds and handle daily operations more effectively for its underlying companies. “We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!” The two classes of shares GOOGL and GOOG will continue to trade on Nasdaq.
Under the new structure, “you as an investor can now see clearly how the core business is performing, what kind of margins they are getting, and also keep an eye on what new innovations are happening”, Chowdhry told AFP.
He also replied “thanks” to another Tweet by Founding Editor of digital news daily Marketing Land, Danny Sullivan who posted “Wow.Google gets its third CEO, @sundarpichai – congrats!” “We [have done] a lot of things that seemed insane at the time”, Page said, noting that the Alphabet strategy gives Google more flexibility to innovate.
Google’s Capital and Venture businesses will be organised under their own CEOs, as will Google X, the “moonshot lab” responsible for new projects like the driverless vehicle. It offers a version of the Android operating system for use in cars and has done extensive research on self-driving vehicles.
He added, “Our company is operating well today, but we think we can make it cleaner and more accountable”.
Of his replacement at Google, Mr Page said: “Sundar has been saying the things I would have said (and sometimes better!) for quite some time now, and I’ve been tremendously enjoying our work together”.
“What is Alphabet? Alphabet is mostly a collection of companies”.
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It’s pretty clear that investors like Google’s decision to create Alphabet because Google’s stock jumped almost $40 a share after Wall Street heard about the move.
