Google CEO Larry Page surprised the world by announcing that they have a new parent company called “Alphabet”, which will handle not only a number of independent companies, but Internet search as well. This is definitely one announcement that even experts who sell electronics did not anticipate .
The new company will still be headed by Page. Some of Google’s newer ventures that will be cosnidered as part of Alphabet’s umbrella are Google’s investment unit called Google Ventures, their research arm X Lab, and a number of health and science operations.
Google co-founder Sergey Brin will be holding the litle of President, while Google’s Executive Chairman Eric Schmidt will hold the same litle at Alphabet.
All about management and leadership
Why the sudden change?
Google execs believe that the reorganization will help them run things more seamlessly by letting their ventures that are unrelated to the main Google structure be run independently.They also believe that the new-found independence of the Google arms that will be separated from the rest of the group will help them develop and highlight strong leaders within the organization.Of course, page also emphasizes that he and Sergey will still be around at all times in case their help is needed.
Instead of seeing Google Inc. on trading boards it will now be seen as Alphabet Inc. Of course, Google shares will automatically by converted into Alphabet shares.
The first few months after the announcement will serve as the transition period as the new operating structure is enforced.
What happens to Google?
Basically, Google will now be seen as a subsidiary of Alphabet.This includes the search engine, the search ads, Google Maps, Google apps, Android, YouTube, and a number of other related tech operations.
The change has come just in time, as there have been reports that people are starting to monitor Google to see if they would still be able to continue dominating the tech sector. After all, they have been holding the top spot for a few years now. This means that technology has evolved around them, paving the way for more players who might possibly take their spot.
The past year has also been troubling for for them. Sure, their shares have hit an all-time high in early 2014, However, their newer ventures were not faring well. Google+, the Google Glass, Google TV, self-driving cars -these were some of the painful reminders that Google is strating to run out of the painful reminders that Google is starting to run out of juice not just in terms of bankable ideas, but in making those ideas into practical reality.
In others words, they have already reached their peak , and others fear that they might start their descent after that. This transition could be the rest of the industry , there are still reeling from the surprise that came with the announcement. It could be the right decision, it could be wrong. No one really knows yet. But as far as Alphabet and Google are concerned, this move shows that they are not giving up their seat just yet. They will try everything possible before they give up their throne without a fight.
In the photo Alphabet CEO Larry Page and President Sergey Brin
