Yesterday, something HUGE happened. The whole internet is buzzing about this announcement and if you haven’t heard yet, GOOGLE IS DEAD! Yes, you heard that right. Google has announced a corporate restructuring on Monday, and is in the process of forming an umbrella company called Alphabet. A new CEO to the core business of Google. Larry Page, Sergey Brin, Eric Schmidt and David Drummond will leave Google, whereas Ruth Porat will keep her CFO role there and Sundar Pichai will take over as CEO of Google.
Understanding Alphabet – Google’s New Parent Company
Google announced on Monday that it is restructuring the tech company and re-branding itself as Alphabet – a new umbrella corporation (holding company), which will own a number of tech companies out of which Google will be the largest fully owned subsidiary of Alphabet.
In a shocking blog post that was made public after the stock markets closed, Larry Page and Sergey Brin, Google’s co-founders, announced a complete restructuring of the company’s corporate identity and management, announcing Sundar Pichai as the CEO of the core search engine business.
The new umbrella company, Alphabet, will own a collection of tech companies, the largest of which will be Google, the search engine business. Full details about Alphabet’s organizational structure is yet to be released, but Larry Page has mentioned a number of ventures that will be taken out of Google and will possibly become standalone ventures under the Alphabet umbrella:
- Google’s ambitious life sciences research into areas like glucose-sensing contact lenses
- Calico, Google’s human longevity project
- Google’s X Lab, which Page says “incubates new efforts like Wing, our drone delivery effort”
- Google’s investment arms, Ventures and Capital
There’s already a new Alphabet website, online at abc.xyz, which includes a hidden link to the popular but fictional Hooli.xyz website from the HBO comedy, Silicon Valley.
As part of this radical change, the company that was earlier called as Google is going to become a new holding company called Alphabet. Existing shareholders will get 1 Alphabet share for each Google share they previously owned. Alphabet shares will continue to trade under the GOOGL (GOOGL, Tech30) and GOOG (GOOG) ticker symbols when the change comes into effect in later this year.