All shares in Google, Inc. will be transformed into shares into Alphabet, Inc.
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With a suite of complementary businesses and more likely to come on stream, dividing out its separate companies into individual parts could head off future issues.
Google CEO Larry Page is an ambitious man. Not satisfied with founding one of the world’s biggest and most influential technology companies, he’s now plotting to spend billions of dollars in Google profits on new ventures that are far removed from Google’s original search business. What do we mean by far afield? That includes Google X (self-driving cars, delivery drones, internet balloons), Nest (smart thermostats), Google Fiber (a broadband service), Calico (longevity research), Life Sciences (contact lenses) and Google Ventures, or new startup investments.
“Alphabet is about businesses prospering through strong leaders and independence”, Page explained. The press release also says, “Sergey and I are seriously in the business of starting new things”. We will rigorously handle capital allocation and work to make sure each business is executing well. Each business, including Google, will have its own CEO.
The move will also allow Google to give some of its top executives weightier-sounding titles.
The company has been spreading their wings and has been soaring higher and higher, however, the more they grow the more complex does it get to manage things. Alphabet is now the parent company of all of those smaller companies, one of which is Google.
“What is Alphabet? Alphabet is mostly a collection of companies”, Page wrote in an August 10 blog post. They will be transferred to Alphabet in the same ratio and continue to trade under the name GOOG and GOOGL. But for now they will remain the same.
BMW is examining whether any trademark infringement has taken place, Sandstede said. While the Google co-founder has not indicated any plans to retire, he has at times struggled with a condition affecting his vocal cords that interfered with his ability to speak.
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Pichai has worked at Google since 2004, most recently as the senior vice president of product. But, since the non-Google division of Alphabet will include a vast majority of projects on which Brin and Page embarked in the last years, it will still be hard to see which projects bring money into the firm and which drain funds in R&D expenses. 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.
