Google was formed primarily as an internet search engine. Overtime, it broadened its scope to other area’s such as smart phone operating systems, intelligent cars,drones, and even pharmaceuticals. The fact is that most of Google’s secondary ventures do not yet earn any money. This was troubling for investors who had put their money into Google’s stock at Wall Street, they demanded more knowledge and insight into the company revenue.
Now heeding to those demands, Google has restructured its self, falling under the umbrella of larger conglomerate known as “Alphabet”. As Google Co-Founder and CEO Larry page put it “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”
In the new classification Alphabet will be spearheaded by CEO Lary page and his Google Co founder Sergery Brin as president. New Google CEO will be Sundar Pichai who was promoted from Product Chief and had led project management for Google Chrome and Chrome OS prior to that as well. Larry page has shown great deal of trust on Sundar stating in his blog “I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations.”
Companies falling under Alphabet are as Larry said”far afield of Google’s main Internet products” these will include
- Calico, an anti-ageing biotech company
- Sidewalk, a company focused on smart cities
- Nest, a maker of Internet-connected devices for the home
- Fiber, high-speed Internet service in a number of American cities
- Investment arms, such as Google Ventures and Google Capital
- Incubator projects, such as Google X, which is developing self-driving cars and delivery drone.
And What will remain part of Google you ask? Here his the breakdown
- YouTube, the video service
- Android, the company’s mobile operating system
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. The two classes of shares will continue to be known on Nasdaq as GOOGL and GOOG.
The restructuring in part is an effort by Google”s leaders to maintain its place as a leader in innovation. This will be see overtime whether the projects under Alphabet turn out be a success or not. As for Google it is under very capable hands but in tech valley where charismatic leaders have traditionally ruled the roost, will Sundar Pichai be able to hold his own?