Google has announced the creation of a parent company called Alphabet, with Larry Page as CEO and Sergey Brin as president. Sundar Pichai will be the new CEO of Google.
Alphabet, with the URL https://abc.xyz/, will be the holding company for Google’s many different projects like Google Maps, YouTube, Chrome, and Android.
The aim of the restructuring is to get more “ambitious things done”, taking a long-term view and “empowering entrepreneurs and companies to flourish”.
“Google is not a conventional company. We do not intend to become one.” As part of that, we also said that you could expect us to make “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.” From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have,” said Page in an explanatory letter about Alphabet and the restructuring at Google.
“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.”
What is Alphabet?
Alphabet is mostly a collection of companies, Page said. The largest of which, is Google. “This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related,” Page said.
Alphabet will also include Google’s X lab, which incubates new efforts like Wing, the company’s drone delivery effort. “We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure,” Page said.
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.
He said that the group is excited about:
- 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.
- Improving the lives of as many people as possible.