Google came forward with its new challenge and a major change of becoming a new holding company named Alphabet. This is a true up-side-down moment for Google structure and future.
The mysterious Alphabet is going to contain sub-company Google with this search engine, internet ads, maps and apps and other technical infrastructure. Apart from that, a collection of other businesses such as Life Sciences (Google contact lenses), the Google X lab (driverless cars, Google Glass, drone delivery), Calico (increasing longevity), and the company's robotics division. Google Ventures and Google Capital will also be part of the expending Alphabet family.
The “merging” and reorganization of Google into Alphabet is planned to happen within the next 12 months with the end result of Alphabet, which is simple words is a collection of several companies separated from its core Internet platform. The site even has a very peculiar URL abc.xyz.
The newer Google is somewhat stripped down and will focus only on internet-based services such as Google Maps, Youtube, Chrome and Android. The big minds of Google believe that the reorganization will provide the necessary management capabilities to run things independently rather than grouping a lot of things which are not very related into one big bawl.
Google’s co-founders Larry Page and Sergey Brin announced the radical turmoil of the company’s structure and management, giving the steering wheel of its core search engine business to Sundar Pichai.
The overall agenda is slowly but surely replace Google as the publicly traded company by Alphabet and all Google shares will eventually convert to Alphabet ones. Company shares will remain on the Nasdaq under the same GOOGL and GOOG ticker signs.
What the heck is this Google up to now?
According to its co-founders, Google was never supposed to stop growing, exploring and finding meaningful things with the resources in hand. Now it’s ready to make smaller bets into rather strange areas compared to the current success story.
Google founders decided to turn their eyes to risker bets on autonomous cars, smart household devices, cutting-edge medical research and so forth. The reorganization move will allow the investors to have a transparent look on all Google assets and core business.
The market reaction rages from complete amusement to immediate speculation. Google co-founders Larry Page and Sergey Brin will run Alphabet. And Google is turning into a letter G in the whole structure.
"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," said Page in the announcement.
There's already a new Alphabet website with rather peculiar URL abc.xyz, so feel free to snoop around.
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