Google relabels its empire with Alphabet soup

Google relabels its empire with Alphabet soup

Its largest company will be Google, which will be reduced, removing companies that do not belong to its core Internet business.



Some analysts predicted shares in the new holding company could rise from about $700 to well over $800.

Other departments spinning off into their own sub-companies including research focused Life Sciences (Google contact lenses), the Google X lab (driverless cars, Google Glass, drone delivery), Calico (increasing longevity), and the company’s robotics division.

A “strong” CEO will run each of the businesses with assistance from Page and Brin, Page said.

He added, “Our company is operating well today, but we think we can make it cleaner and more accountable”.

In response, Brin and Page launched a new holding company named Alphabet. She emphasized that the website is a “very active” part of Alphabet’s business. Google have a long history of buying tech start-up companies, not all of which necessarily are complemented by being associated with Google.

Google’s previous set-up reportedly does not emphasise or allow new waves of product development as compared to what Alphabet can do. Chief financial officer Ruth Porat will continue to act in her current capacity for both Google and 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.

First, the good news: so far BMW has not chose to take any legal action, though it is looking into whether or not Google is in violation of their trademark. A separate bucket will house Google’s more far-flung experiments and acquisitions.

Google is arguing that the shift means Google itself can focus on its core business and revenues (i.e. all that money in advertising) while the more experimental businesses can break free of the Google brand and become their own thing.

India-born Sundar Pichai, who had earlier been pioneering product and engineering for Google’s Internet businesses, has been made the new CEO of Google, while Larry Page will control Alphabet. Technically, they still will, but they’ll have a level of detachment that should make their jobs (and their company) more manageable. The products you use everyday like search, maps, YouTube and the Android operating system will retain the Google name.

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