Google has assimilated within a new holding company called Alphabet inside, which most of the Google controlled companies, and the search engine giant will now operate.
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CEO Larry Page announced via Blogspot on Monday the creation of a new public holding company, Alphabet Inc., to replace Google Inc.in an attempt to make operations “cleaner and more accountable”.
Alphabet will be the parent company presiding over distinct entities, of which Google is to be the largest initially. Alphabet will own Google plus a variety of other companies.
He entered into Google in 2004 year as low-key manager, later worked as Google SVP of Android and Chrome and APPs and then turned as an in-charge of product and engineering of Google.
The name was chosen, Page said, because the alphabet represents language, one of humanity’s most important innovations, and is the “core of how we index” in a Google Internet search. Susan Wojcicki, who is the CEO of YouTube will be reporting to the new Google CEO, Sundar Pichai.
“Sergey and I are seriously in the business of starting new things”, Page wrote in a 980-word blog post. “We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation”.
This will provide more management scale and allow companies under the Alphabet umbrella to be operated independently.
Page and Brin’s ambitious plans for Alphabet are made possible by Google’s unusual corporate structure, which gives the co-founders a majority of the voting power. Instead, he is creating Alphabet because he believes he can invest Google’s billions of dollars in annual profits more effectively than Wall Street can.
The key for the parent company is to allow each of the companies to develop their own brands successfully and be truly independent.
Two financial firm, Google Ventures, which is a venture capital arm, and Capital, investing in private equity deals, will also be part of it. 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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Pichai will run Google’s traditional search, browser, and operating system business – as he has effectively been doing for almost a year now anyway – and Google will be slimmed down in other ways Page said, without being precise.
