Google Company aroused everyone with its explosive news on Monday on their blog.
Google has suddenly introduced Alphabet, Inc – the new parent company for all subsidiaries, including Google itself. OMG? What the hell was that?
Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet.
According to the announcement of the founder of the American media giant, Larry Page, the new corporate structure will simplify the existing scheme of brand management.
Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed.
Under the Google “umbrella” well-known brands such as YouTube and Android will remain the same, as well as the internet search and applications.
By the new plan, Larry Paige will be the executive director of the Alphabet while the Google co-founder Sergey Brin will sit in the president chair of the Alphabet company.
Google vice president Sundar Pichai will become the chairman of Google.
This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google. A key part of this is Sundar Pichai. Sundar has been saying the things I would have said (and sometimes better!) for quite some time now, and I’ve been tremendously enjoying our work together. He has really stepped up since October of last year, when he took on product and engineering responsibility for our Internet businesses. Sergey and I have been super excited about his progress and dedication to the company. And it is clear to us and our board that it is time for Sundar to be CEO of Google.
The Investment and Research units will come under the management of Alphabet.
Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
According to the blog post, the brand name Alphabet was chosen due to the fact that the language reflects the basic character set and the search on Google. Also, it’s a pun in English and can be translated as “a first-class investment.”
We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!
Twitter society literally exploded with disgruntled posts filled with jokes and sarcasm.
So, the Alphabet has been launched.
What will it lead to? Who knows. Will see. What do you think? Share in comments.