Google Announces Creation Of Parent Company Alphabet
Google is Dead. Long live Alphabet.
Okay, Google is not exactly dead but it does make for a more interesting opening line and it is not often I get to quote one of my favourite songs. Today, after the close of the stock markets,Larry Page, co-founder of Google, released a blog post detailing the future of the internet giant. Titled “G is for Google” Larry spoke of major changes coming to the company. The biggest one being the formation of a new parent company Alphabet, (abc.xyz).
We did a lot of things that seemed crazy at the time. Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. And we haven’t stopped there. We are still trying to do things other people think are crazy but we are super excited about. – Larry Page
Crazy is the right word to describe Google and their way of thinking at times. Always thinking in ways that no other company seems to dare, this move has shocked even the most hardened of supporters.
SO WHAT IS ALPHABET?
Alphabet is to be more a collection of companies. Google, as we knew it, was the head with products such as YouTube, Android, GMail, Search as well as their Division X and Project Loon among others. Now Alphabet is to sit at the top of the table controlling all the smaller parts under it.
As well as a new name there is also going to be some moving around. Larry Page has been announced at CEO of Alphabet with Sergey Brin, co-founder of Google, taking up the role of President of Alphabet and Eric Schmidt as executive chairman. Sundar Pichai takes over as CEO of Google, a role many believed he was in line for after the work he has been doing previously as Head of Chrome and Android for Google.
SO WHAT IS NEXT?
While not many details of what lies ahead for the future of Alphabet, a few clues as to the direction Alphabet will take,
- Getting more ambitious things done.
- Taking the long-term view.
- Empowering great entrepreneurs and companies to flourish.
- Investing at the scale of the opportunities and resources we see.
- Improving the transparency and oversight of what we’re doing.
- Making Google even better through greater focus.
- And hopefully… as a result of all this, improving the lives of as many people as we can.
So what does any of that really mean? Well it is Google, sorry Alphabet, so who knows. I do not believe it is unreasonable to guess that a driving force behind this has been the various government and mainstream media attacks against Google. Restructuring Google in this way may give them more room to bypass concerns that various law agencies have and side-step any rulings that come their way forcing them to restructure. That being said I am sure in the coming days, weeks and months we will find out more about what this move means long-term.