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  • Google Announces Major Corporate Restructuring, Creates Parent Company Dubbed Alphabet

    Google recently announced a major corporate restructuring which includes the creation of a new parent company dubbed Alphabet. Going forward, Google will be just one of several subsidiaries owned by the parent company. According to Google co-founder and now CEO of Alphabet, Larry Page, the new incarnation of Google will be “slimmed down” and see Sundar Pichai promoted to the position of CEO.

    In a recent blog post regarding the matter, Page mentioned that Pichai “has really stepped up” since taking on new product and engineering responsibilities. He continued by adding that the executive:

    …has been saying the things I would have said (and sometimes better!) for quite some time now.
    As far as businesses that weren’t previously a part of Google’s core Internet products, they will be moved under the Alphabet umbrella. Alphabet will also become the parent of entities such as Nest, Fiber and the Google X research labs and Google’s Ventures and Capital Investment firms. Search, Maps, Android, YouTube and advertising will remain under Google’s domain as of right now.

    From an internal company standpoint, Page and fellow Google co-founder Sergey Brin, who was Alphabet’s first president, have promised to “make sure each business is executive well,” and even went as far as setting compensation for the new companies’ CEOs. The move as a whole also marks a radical change for investors. All of existing Google shares will automatically convert into Alphabet stock and starting in the fourth quarter, Google results will be segmented away from the rest of Alphabet. As Page explained the changes, he said that the goal is to make things “cleaner and more accountable.” It should be noted that despite the creation of Alphabet, each company will be granted a certain amount of independence and ability to develop its own brands.

    The recent developments can possibly have large ramifications for Apple, which has been competing with a unified Google in terms of mobile platforms, advertising, music services, among many other industries. Alphabet’s subsidiaries could potentially fight against Apple in even more industries as they decide to go in different development directions. We’ll just have to wait and see.

    Source: Google (Press Release)
    This article was originally published in forum thread: Google Announces Major Corporate Restructuring, Creates Parent Company Dubbed Alphabet started by Akshay Masand View original post