Google has announced a huge restructure of its corporate company. Google” will now refer to just the main businesses of Search, YouTube, Android and some other businesses and Alphabet will be the parent company. This will be managed by the new CEO of Google- Sundar Pichai. The new company, Alphabet will be run by Sergey Brin and Larry Page, with Page being the CEO and Brin the president.
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What will Alphabet Bring with it?
Alphabet will be a collection of companies, with the largest being Google. The companies which are not closely related to the Internet products will be contained in the Alphabet. For instance, the heath efforts like Calico, Life Sciences, Nest, Fiber, etc. will be under Alphabet.
Apart from that, other businesses like the investment ventures of Google- Google Capital and Google Ventures and incubator projects like Google X will be managed by the new company.
What does this mean for shareholders?
Shareholders who have shares in Google will get one Alphabet share for every share of Google they owned earlier. The same executives will be in charge of Alphabet- CEO- Larry Page, President- Sergey Brin, CFO- Ruth Porat, Executive Chairman- Eric Schmidt and chief counsel- David Drummond.
In a Google blog post, Larry Page wrote about the new organization “This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google. A key part of this is Sundar Pichai. Sundar has been saying the things I would have said (and sometimes better!) for quite some time now, and I’ve been tremendously enjoying our work together. He has really stepped up since October of last year, when he took on product and engineering responsibility for our Internet businesses. Sergey and I have been super excited about his progress and dedication to the company. And it is clear to us and our board that it is time for Sundar to be CEO of Google.”
Regarding the shares he explained “Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.”
How this development will affect search engines, is still yet unknown. It can be hoped that we will not face any change in our websites. As of now, we can wait till we get to know more in details.
What do you think about this latest development of Google? Do you think it will have any negative effect on the websites? We would like to hear your thoughts in the comments below.