In a surprising move, Larry Page from Google today announced that Google is to create a new parent company called Alphabet (https://abc.xyz/) and he also announced that Sundar Pichai will become the new Google CEO. Really this isn’t a joke!!
So what the hell is Alphabet? Well it seems that Larry Page is deciding to break up some of Google’s ever diverging technologies and industries into separate brands.
According to Larry Page,
“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”
It appears that Google will remain the simple search engine and advertising power house it has always been and Android, YouTube, Maps, Drones, Driverless Cars, Meteor Mining and all of the other out of the box ideas from the X Labs will belong to Alphabet.
After recovering from the initial surprise of the announcement, I have to admit that from a business point of view it makes complete and perfect sense.
Google the Search Engine will be able to concentrate on its core business and it may even see a new drive and energy behind projects like Google+ (that’s if they are allowed to keep it?? I have a feeling Google will want to name a service after each letter in the Alphabet!!)
You can read Larry Page’s full statement here.