Google’s biggest announcement!
Amy | On 12, Aug 2015
In a recent blog post by co-founder Larry Page, declared that Google will be turned into a subsidiary company called Alphabet – what he explains as “a collection of companies”.
Alphabet will be managed by Page, who will serve as CEO, as for his friend Sergey Brin (Google’s co-founder) will be the president. As in for Google, it will be managed by Sundar Pichai – the new CEO. Pichai previously was the VP of products for the company.
As Page describes it “this new Google is a bit slimmed down, with companies that are pretty far afield of our main Internet products contained in Alphabet instead”.
Asking yourself what is the reasoning behind this move? Well, leadership believes this will allow itself more independence in the management of projects that aren’t closely related.
As in for questions like: why this move? Why now? In brief, Page and company listened to Wall Street. Alphabet was established on the promise of Internet search and digital advertising. However, now it works in many different fields; such as: venture capital, health, and even drones. Those other interests, although they’re important to the future, do not make money, neither do they worry many investors. The Alphabet move seems to be very responsive to those Wall Street concerns.
As a result, the openly traded company won’t be Google; it will be Alphabet, though their plans are still to trade it under the symbols GOOGL and GOOG on the NASDAQ. Shares of Google will automatically be conveyed into Alphabet shares.