A new session in Google’s history unfolded earlier today, when co-founder Larry Page announced that the company and all its ventures will henceforth be operating under a new patent company called Alphabet Inc., front by Page himself as CEO and co-founder Sergey Brin as President.
Shareholders will get one Alphabet share for every Google share they previously owned. No matter how crazy they may seem, Google has always been an exploratory company, never afraid of experimenting itself with and invest in a new ideas in a maltitude of fields. This move, as Page explains in his post on the official Google blog and abc.xyz website, is to streamline these efforts while providing greater transparency and flixibility to each.
The smaller company called Google, headed by CEO Sundar Pichai, that includes the company’s core businesses: “search, ads, maps, apps, YouTube and Android and the related technical infrastructure.” Other businesses, “such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X,” which “will be managed separately from the Google business.” With Google becoming a subsidiary of Alphabet, it will be replaced by Alphabet Inc. as the publicly-traded entity while the ticker symbols for its shares (GOOGL, GOOG) remain the same.
What is Alphabet? The name is the homepage to the letters that make up a language or as Page sees it, “one of humanity’s most important innovations”, and Alpha – the measure of an investment’s performance against a benchmak index. Google will focus on other ventures that don’t share much in products or services with the Internet gaint, like the research sunbsidiary that now works on Glass. All these will now be separate entities along with Google under the umbrella of Alphabet Inc. It should certainly have competitors rethinking their strategies.
It is clear and fair that Google is looking forward evn faster in its quest for new, game-chaging ideas with Alphabet. While it might have competitors of each Alphabet subsidiary rethinking their ideas, it spells exciting times ahead for us consumers as well as spring enterpreneurs looking for the support of a stable collective.
The official Alphabet website is up at abc.xyz.