This is one of the biggest news of all time for the corporate world. Google Inc, the $US445 billion search advertising giant announces a major restructuring, putting the company under a newly formed entity called Alphabet.
Well don’t worry, Google is not dead. We all love the brand and the brand name ‘Google’, and thankfully the name stays. The search engine brand will still operate by the name Google. Just that it will be owned by its umbrella company Alphabet.
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant,” Larry Page, Google co-founder and now Alphabet CEO said in a blog post.
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 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.” Larry Page said in recent blog G for Google
As part of the restructure, Page will become Alphabet’s CEO. Brin will be its president, and Eric Schmidt will be the executive chairman of Alphabet. Indian Born Pichai will be the CEO of Google.