Sometimes a massive corporate reorganization is required to shake things up, and, for Google, that’s what’s happened.
In an official blog post today, August 10, Google has announced that it has created a brand new parent company known as “Alphabet.” With this new company, Google will be slimmed down in a big way, but its major facets will not be changing. Google will just be another company under the umbrella known as Alphabet, where other companies, including Calico (a life-extension project) and Wing (a drone-delivery company), will also exist — among many others.
“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.“
For Google, though, the big things are staying the same. Android, Maps, YouTube, and plenty of other products from Google will still remain, and it doesn’t appear any major changes to these services will affect anything.
“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! I should add that we are not intending for this to be a big consumer brand with related products–the whole point is that Alphabet companies should have independence and develop their own brands.“
Google’s Sundar Pichai will be the CEO of Google moving forward, while Google co-founders Larry Page and Sergey Brin will be heading up Alphabet. Their goal is to focus on some of the more prominent, ambitious things accomplished, which the pair have always had an eye on:
We are excited about…
- Getting more ambitious things done.
- Taking the long-term view.
- Empowering great entrepreneurs and companies to flourish.
- Investing at the scale of the opportunities and resources we see.
- Improving the transparency and oversight of what we’re doing.
- Making Google even better through greater focus.
- And hopefully…as a result of all this, improving the lives of as many people as we can.
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant. Our company is operating well today, but we think we can make it cleaner and more accountable.“
Big changes at Google, but for those focused more on the company’s mobile-focused endeavors, it appears the majority of them are staying the same for now.[via Google]