In surprising Google news that seems to have come completely out of left field, Google announced that they formed a brand new holding company called Alphabet, Inc.. With the introduction of Alphabet, Google would become a fully owned subsidiary of that entity. With this new hierarchy in place, The co-founders of Google, Page and Brin, will become CEO and President of the new company, respectively. With Page acting as the CEO of Alphabet Inc., Sundar Pichai will become the new CEO of Google.
In another post written at Marketing Land, Alphabet Inc. will consist of a number of entities, which will include:
- Fiber (internet access)
- Google (Search, Maps, YouTube, Android, Ads, Apps)
- Google Ventures (VC investing)
- Google Capital (investment fund)
- Google X (auto-driving cars, Google Glass, internet by balloon, moonshots)
- Life Sciences (the glucose sensing contact lens people)
- Nest (smoke alarms, home camera, thermostats & connected home devices)
Although this is surprise move that has left many of us a bit confused, it makes sense, as this seems to be an effort by Page and Brin to remove themselves from the daily operations at Google. By doing this, it allows them to focus on a wider range of other higher level projects. According to Page, this will allow him and Brin to get “more ambitious things done” and “take the long term view.”
Another point that Page that gave was that with Pichai as the CEO, there will be a “slightly slimmed down Google” that will now have a greater focus. On the Wall Street side of things, Alphabet will be the publicly traded entity, and not Google. It looks like after the news of Alphabet Inc. was released, There was a Wall Street analyst that said that Google stock rose after hours.
Original SOurce by Greg Sterling