Tuesday, 25/10/2016 | 6:38 UTC+8
Speed Magazine

G is for Google: New umbrella company called Alphabet now owns Google

G is for Google: New umbrella company called Alphabet now owns Google
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“Google is not a conventional company. We do not intend to become one.”

That’s what Google co-founders Larry Page and Sergey Brin wrote in their original founders letter a little more than a decade ago. And we’ve seen them live up to this claim—creating, acquiring, and doing seemingly crazy little things that shake up the industry. YouTube and Android, anyone?

But on Monday afternoon, Google did something big. No, massive. They hit the reset button on their business and announced a huge change in their organizational structure. Google has reorganized itself into multiple companies and will now be under a new umbrella company called Alphabet (abc.xyz).

“Alphabet is mostly a collection of companies. The largest of which, of course, is Google,” Google co-founder Larry Page said in a blog post. “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 this means is that Google will continue to run internet-centric services such as YouTube, Chrome, Google Maps, and Android, but will have its projects and initiatives such as the X Lab and the Calico life extension project run as separate entities.

Page is CEO of Alphabet, Brin is president of Alphabet, and Sundar Pichai, who’s been running Google since October, is now officially in charge of the company.

“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,” said Page.

“Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed,” he added.

He said the new structure will help their aim of:

  • 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 yes, Google will now become a wholly owned subsidiary of Alphabet, and Alphabet Inc. will replace Google Inc. as the publicly traded entity. The company, however, will continue to trade under its familiar tickers GOOG and GOOGL, so if you’re thinking this is stock play—“Alphabet” comes before “Apple”—then maybe you’re wrong.

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