Google will soon come under a new holding company called Alphabet. That’s right. In a move that is likely to have huge repercussions on how Google goes ahead, it today announced a new operating structure.
Announcing this in a press release, Google CEO Larry Page said: The company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related.
So why Alphabet? Here’s Larry’s explanation:For Sergey and me this is a very exciting new chapter in the life of Google—the birth of Alphabet. 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.
Under the new company, Google now plans (in its own words) to:
- 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 as Larry wrote in the release, “…..hopefully… as a result of all this, improving the lives of as many people as we can.”
Google Is Reorganizing Under a New Company Called Alphabet – New York Times
http://news.google.com Aug 11, 2015
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Google to restructure under ‘Alphabet’ umbrella with search engine as one of … – ABC Online
http://news.google.com Aug 11, 2015
Google unveiled a surprise corporate reorganisation on Monday, forming a new parent company dubbed Alphabet that will include the internet search unit …
Google to reorganise into new company called Alphabet – The Straits Times
http://news.google.com Aug 10, 2015
(AFP) – Google unveiled a new corporate structure Monday, creating a parent company dubbed Alphabet led by chief executive Larry Page, with the Inter …
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