Larry Page has made a major announcement today which is one of the biggest of all till date. The co-founders just created a new parent company called Alphabet which will be a collection of companies. The largest of which being Google and others would include Life Sciences, Calico etc. The aim is to create a more cleaner and more accountable company. Larry said ” I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President”. Alphabet will replace Google Inc. as the business traded on the stock market. Google will be a wholly owned subsidiary of Alphabet and the two share classes will remain GOOGL and GOOG. Alphabet including a cluster of businesses, Larry mentioned that they wanted all their businesses to be run by powerful CEO’s with Sergey and him in service to them as needed and handling the capital allocation and work.
New CEO of Google?
This new structure will help the co-founders to focus on the extraordinary opportunities and they all can be met with the help of each strong CEO’s of different businesses. A key role has been played by Sunday Pichai since he was appointed the position of product engineer in October and has been telling things to us which probably Larry would. It was very clear that his dedication and excellent work would really make him the CEO of Google and today the statement has proven true. Larry also talked about Susan doing a great job as the CEO of Youtube. Innovation being the key element of Alphabet, they believe in their CEO’s to take all their businesses to the next level.
What will Alphabet include?
A smaller company called Google, headed by CEO Sundar Pichai, that includes the company’s core businesses. Those businesses including search, ads, maps, apps, YouTube and Android and the related technical infrastructure. Other businesses, such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X which incubates new efforts like Wing, drone delivery effort and it will be managed separately from the Google business.
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!
The move comes at a time when Wall Street is once again in love with Google, following a strong earnings report and the hiring of a well-regarded CFO. Investors appeared to cheer the introduction of Alphabet: Google stock jumped 5% in after hours trading following the announcement. It would be really interesting how the individual companies perform and turn into brands themselves and make Alphabet even a bigger brand hence. This is a big step towards a structured and innovative approach to make lives better. You all will be getting familiar with the name soon, don’t worry about that as they themselves are feeling a bit awkward at the moment with the thing. Tell us what you think about this amazing new step taken by Larry Page and Sergey Brin? Are you all excited about Sundar Pichai being the new CEO of Google? Share your ideas and views about the new Daady of Google, cheers!