This August Google announced that they are restructuring the company. Yesterday, the official paper filing is done with United States Securities and Exchange Commission and yesterday was the last day when stocks were traded as Google. On 5th October when stock and share trading begins it would be under “Alphabet Inc”. This is what Larry Page said about new company Alphabet on its homepage:

“Our 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.”

– Larry Page

What does this change mean?

Larry Page explained that he never considered Google as a conventional brand. They explored unknown territories in most unconventional way. They expanded themselves in unrelated fields be it driver less car, Internet balloons, Google Internet (Fiber), Nest (Home Automation), Google Glass and Life Sciences. The list goes on and Sergey and Larry wants to continue the trend by making Google free with this merger.

This does not change anything for Google as it will will work as a wholly owned subsidiary of Alphabet. Sundar Pichai will continue to lead Google as a CEO. Now Google includes Android, Search, YouTube, Apps, Maps and Ads. Fiber, Nest, Life Sciences, Google X, Self driving cars etc will be Alphabet’s responsibility. The idea here is to keep Google focused on what they are doing right now and let Alphabet venture into some strange and less speculative businesses. We know Google has created such businesses from Google Maps, Chrome and YouTube which are making billions of dollars today.

What is in it for Alphabet?

Larry Page has made it clear that they don’t want to become complacent and harp on Google’s success. Its going to be a sort of Octopus which will be spreading its arms and legs in all directions controlled under Alphabet. This gives Alphabet to do more without disturbing other businesses which are already well established or getting there. This change has made Google shed some of its load by taking away Glass, Internet and few others. Larry has assumed the role of CEO and Sergey as President in the newly formed company.

As an end user it does not make any difference that Google is now Alphabet except that we can’t Alphabet Alphabet but we could Google Alphabet.

Here is the full letter from CEO Larry Page on Alphabet homepage.


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