When you’re a company as big as tech powerhouse Google, it only make sense that you create or buy a lot of other companies to diversify your business and well, make you richer. And when things start to feel confusing as to which supersedes what, it helps to line up all your companies alphabetically and then create an umbrella around them and aptly name it the Alphabet.
For Google, the Alphabet works.
Google (and now, Alphabet’s) Chief Executive Officer Larry Page and his partner Sergey Brin have long known that “Google is not a conventional company.” Moreover, they do not see a version of the future when the tech company will ever become one. But just the same, they saw the need to make their company (or rather, companies) “cleaner and more accountable.”
Hence, they lined all their companies up (from A to Z) and called them the Alphabet, Inc. And yes, the new company’s website address is named abc.xyz.
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In Alphabet, Google co-founder Brin will serve as President. Together, they envision a system where both Brin and Page can give advice to any company in their umbrella as needed. After all, they believe that each one of their companies has a CEO that is more than capable.
Slimming down of Google
As for Google, Page has announced that Sundar Pichai will become its new Chief Executive Officer. Page also says that the new Google will be “slightly slimmed down.” Companies like Life Sciences and Calico will be running independently, allowing Google to put focus on internet products. At the same time, Page is also happy with the success of Google products that have already become a strong brand on its own, like YouTube.
As Google becomes a subsidiary of Alphabet, Inc., expect the latter to also replace the former in the stock market. Nonetheless, shareholders and investors need not be confused as all Google shares will be automatically converted in the same amount of shares of Alphabet.
Now, there’s just one thing. What happens when they run out of letters?