11th Aug // 2015
Google has surprised the world by announcing a major restructuring of the company. How they managed to keep this a secret is anyone's guess.
The search engine giant said in a blog post by Google Co-Founder Larry Page that Alphabet will now form the parent of a group of Google owned ventures, from healthcare to search and home tech.
In the post, Page said: “Google is not a conventional company. We do not intend to become one. As part of that, we also said that you could expect us to make “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.
“From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have.
“We did a lot of things that seemed crazy at the time. Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. And we haven’t stopped there. We are still trying to do things other people think are crazy but we are super excited about.
"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.
“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. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey (Brin), as President.”
The new company will now oversee some of the biggest and most successful tech projects ever created, as well as well-funded new ventures owned by Google. These include:
Google: including Android, Search, YouTube, Apps, Maps and Ads
Fiber: Providing super-fast internet
Google X: Working on big breakthroughs
Google Ventures: Funding for bold new companies
Calico: Fights age-related diseases
Nest: Smart home products
Google Capital: Invests in long-term tech trends
The re-structuring will also see a change in management at the top of the Google tree. Co-founders Larry Page and Sergey Brin will serve as CEO and President respectively, whilst newly appointed Sundar Pichai will become CEO of the core Google business.
Page concluded: “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity's most important innovations, and is the core of how we index with Google search!
“We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products—the whole point is that Alphabet companies should have independence and develop their own brands.
“Don’t worry, we’re still getting used to the name too!”
For more information on what Alphabet means for the financial structure of Google, click here.