After years of long and undisputed legacy of establishing itself as the ultimate supremo among search engine websites, it is time to say goodbye to Google and say hello to the newly formed parent company ‘Alphabet’.
Google, as part of its strategy is now restructuring the whole company and has formed a parent company Alphabet, to which Larry Page will be the CEO and the Co-Founder of Google, Sergey Brin as the President.
While Google so far was serving as the parent company to all its subsidiaries, it will now function as a subsidiary itself under Alphabet, and Indian Born Sundar Pichai will be the new CEO of Google. Calling it the ‘Slimmed down’ version of Google, Larry Page said that the strategy is not just in the change of name, but an entire reorganization of the company.
As google currently owns many other companies as Life Sciences and the Calico biotech along with its operating system Android, and hence, to bring all companies under one roof, and each unit is set to get its own CEO.
“We did a lot of things that seemed crazy at the time,” Page wrote. “Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. And we haven’t stopped there. We are still trying to do things other people think are crazy but we are super excited about.”
While some may fail to understand this strategy, and call it disruptive, it is certainly a proven strategical move, as most of the companies have found that the combined business model, akin to what Alphabet will be like, helps manage the overall company and better execute the process.
Google was valued at $444 Billion just before the announcement of Alphabet. Now, Alphabet Inc. is set to replace Google Inc. as public traded entity, thereby merging all shares of Google into Alphabet Inc.
When asked about the selection of the new name ‘Alphabet’, Larry Page said, “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!”
