Google, the Silicon Valley giant behind such internet products and services as the Google Search engine, Youtube and Gmail, announced on Monday (10th August 2015) that it planned to restructure its company.
They are forming Alphabet Inc, a holding company which would own anything previously owned by Google, as well as Google itself. The unexpected news came in the form of a blog post by Google's CEO Larry Page, who detailed their interest in making 'speculative bets' into areas of business not directly related to Google's current businesses.
Here's a rundown of some of the changes to come of the 'rebranding':
- Google as the subsidiary will be slimmed down, all companies not directly related to Google and its other internet products, are going to be owned by Alphabet; these include businesses such as Nest Labs, creators of the Nest Learning Thermostat, and Calico (Short for California Life Company), a R&D biotech company.
- Larry Page and Sergey Brin, Google's co-founders, became the CEO and President of Alphabet Inc, respectively. Sundar Pichai, Google's Product Chief succeeded Page as CEO of Google.
- Alphabet Inc as the parent holding company, is free to buy up stakes in whatever Page and Brin see fit, with potential to expand their business portfolio to include a wider variety of industries.
- Alphabet is also replacing Google as a publicly traded entity. Google shares will be converted into Alphabet shares, and Google will be a wholly-owned subsidiary. Both shares will be traded on the NASDAQ.
So what does this mean for the future of Google and Alphabet? Page and Brin are certainly optimistic, their blog post outlines potential projects they are excited to be a part of, and if past investments are anything to go on, Alphabet is sure to be a household name for many years to come.