This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead. Each Alphabet subsidiary will have its own CEO, allowing the company to run different divisions independently that may not be closely related.
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“Our company is operating well today, but we think we can make it cleaner and more accountable, ” Mr Page wrote in a blog post on Monday.
In a blogpost on Monday, Larry Page, the former Google CEO announced that Google is reorganizing its entire digital and physical businesses under a single umbrella structure called ‘Alphabet’.
Pichai, who had been in charge of its smartphone operating system Android as well as its Chrome web browser, replaces Page, who becomes CEO of Alphabet. According to the New York Times, Google’s decision to create the mother company Alphabet means that the company intends to be one of the most innovative company of the 21st century.
“Investors will probably be happy because the new structure gives management more flexibility to manage the assets”, said Kay, noting that the revamp will also help Google become a leaner business.
Alphabet.com broke shortly after the news was announced, and has not come back up since.
U.S.-based technology giant Google says it is reorganizing in order to separate its profitable Internet-based ventures from its less well-known initiatives.
On the reverse, there had been concerns that the dominance of Google in its sector had reached its peak.
The projects include self-driving cars, Google Glass, Internet balloons, drones, health care, Google TV, mobile payments, home automation and its Google+ social network, among others. That mega-company is called Alphabet, and it’s ready to become one of those shadowy, quiet corporations that appear up at the very top of those brand flowcharts anti-capitalists love passing around.
Page suggests that Google was becoming too diversified for its own good, and having a plethora of scarcely related businesses were making it a rather fat animal.
For investors, Google shares will now be Alphabet shares, although the ticker symbol will still be GOOG. The search giant has been ratcheting up its financial investments into healthcare, which consumed more than a third of its total Google Ventures investments in 2014.
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Soon after the announcement, Google stock jumped about 5 percent in after-hours trading. Looking at Google before the transition to Alphabet, it was a company with very diverse interests from life sciences and media to maps and search engines.
