The Google business will get Sundar Pichai as its dedicated chief executive, rather than Larry Page who, investors feared, was becoming too distracted by new projects such as drone deliveries and life sciences. It will be a holding ground for other companies acquired by Google, enabling the company that is known the world over for its Internet presence to work on other technologies without impeding development in its core fields.
Google’s Executive Chairman Eric Schmidt wrote on Twitter, “Really excited about the vision and brilliance of Sundar. he’s going to be a great CEO“.
It is said that some “slimming down” will occur in the firm after its addition to the parent company.
“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”.
Mr. Page emphasized that they chose the Alphabet because it means a collection of letters that represent language, the most important innovation of humanity. Meanwhile, Sundar Pichai, Google’s former Senior Vice President of products will now become the CEO of Google under Alphabet.
A “strong” CEO will run each of the businesses with assistance from Page and Brin, Page said. Brin and Page are the co-founders of Google, which was established in 1998. According to Larry Page, each business will be managed by its own CEO.
Back then, he was one of a small group of product managers, but his responsibilities escalated from working on new versions of the Google tool bar to overseeing the building of Chrome.
They added that Google’s self-driving cars and health ventures, such as storing data on human DNA in the cloud, are potentially profitable, but not for at least several years.
“Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related”, Page wrote on the company’s blog.
Kay said the reorganization suggests that Google is ready for change.
“Google, or Alphabet, now has the freedom to diversify and let brands live and die on their own”, said Katie Bisson, marketing manager for Technology Seed, a Google partner based in Salem, N.H.
Practically out of nowhere, Google yesterday announced that it was restructuring the entire company and renaming itself Alphabet. Fortunately, four legal experts that Business Insider spoke to, completely refuted the rumor and stated that the European Commission had nothing to do at all with Google’s split up into Alphabet. He also noted that alpha-bet means (Alpha is investment return above average) is what they are striving to accomplish.