Google made the announcement today, announcing its intention to form a new operating parent company by the name of Alphabet, Inc.
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CEO Larry Page may be soon leaving the Google building, but even as he dreams of running Alphabet, Page still found time to express some love for the oft-maligned Google+. Sundar Pichai, senior vice president of product, will be CEO of the Google segment. The newer Google is a bit slimmed down, with the companies that are pretty far afield of the group’s main Internet products contained in Alphabet instead.
Google’s Capital and Venture businesses will be organized under their own CEOs, as will Google X, the “moonshot lab” responsible for new projects like the driverless auto.
Sundar Pichar will be in charge of Google wrapping up YouTube, Google search, ads, maps, apps and Android.
Other than the name of the new parent, and news of Pichai’s appointment as Google CEO, Page did not provide many details on any additional changes that would result from the reorganization.
The move is a promotion for Pichai, who over the last year has taken on much more responsibility at Google.
What is not entirely clear at this point and quite likely had a major influence on Google’s decision to become Alphabet will be the regulatory-and importantly, the tax-treatment for the holding company. On the corporate side, this allows Brin and Page to have leaders of narrowly defined, focused projects – a more attractive proposition than one large, unwieldy company trying to do everything, with Page and Brin trying to personally oversee everything. “It is easier to make the case to regulators that companies are separate entities if they only share an owner rather than being run as one huge super-brand”. The is a smart move to keep workers happy, which is important for staff retention and also a great way of making the organisations more desirable for new talent.
Vehicle leasing giant Alphabet global 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.
The name was chosen because it refers to a collection of letters which make up a language and “is the core of how we index with Google search”, Mr Page said.
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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!” The name also consists of the word “alpha” which means an active return in the investment industry.
