Google Becomes A Subsidiary Of Alphabet
Back in 1998 when Sergey and Larry founded Google, they were working from a dorm room and later Susan Wojcicki’s garage. It was here that the foundations for what would become one of the most powerful companies in history were laid down. Today one of the largest changes to the company since then has been announced. Larry Page has now created a new company called Alphabet with himself as CEO and Sergei Brinn as President.
Explaining what Alphabet (www.abc.xyz) is, Larry stated that it is for the most part a collection of companies, the largest being Google. All the companies that existed away from Google’s main internet based product line are now contained with Alphabet instead. These include such companies as: Life Sciences the company responsible for the creation of glucose-sensing contact lenses and Calico who are attempting to extend the human life span. We can expect to see other companies like Boston Dynamics (robotics) join as well, Google’s X lab which focuses on new technologies such as self-driving cars will also be moving to Alphabet. This process is aimed at providing greater management and independence of the companies. Each company will now have its own CEO, with Sergei and Larry managing from above as needed. As part of this new structure it was also announced that Sundar Pichai would become the new CEO of Google, a move that was happily agreed on by the board. Other parts of Google such as Youtube will continue as they have done, with the aforementioned Susan as CEO.
Regarding the future of the stock market, Google Inc will be replaced by Alphabet Inc as a wholly owned subsidiary with all shares converting automatically. The conglomerate will still continue to trade as GOOGL and GOOG on the Nasdaq and shareholders will continue to have the same rights.
Public opinion on the changes has already started emerging, with thoughts ranging from disbelief to claims that the changes are all part of a tax relief plan. One reader of the announcement requested that alphabet take the stock ticker symbol AABC, just to take Apple (AAPL) from the first spot. Several members of staff at Google have posted their thoughts on Google+ stating comments such as “Looks like I no longer work for Google” and “I used to work for Google Inc. Still do, but I used to, too.”
The official announcement can be read at Alphabet’s new site here
What do you think of the reorganization and Sundar Pichai’s new title? Leave a comment below!