Don’t call it Google, call it Alphabet. In a blog post published yesterday, Larry Page, the CEO of Google announced a restructuring of the tech giant that will see it adopt a new name, Alphabet. The company has also secured the domain name abc.xyz.
This doesn’t mean the name Google is gone completely. Alphabet becomes the holding company under which Google will fall under. So we can still call it Googling, and every other service we know won’t change.
Google will, however, have a narrowed focus and will cover services including the search engine, which most people have come to associate the company with. Google also picks up the Google Ads, Android, Chrome and Infrastructure, with YouTube falling under its knit, albeit with its independent CEO.
With the new trading name of Alphabet Inc, Shareholders in Google will have their equity converted into the equal number of Alphabet shares.
Each of these companies will have a “strong CEO” and operate with a lot of independence. Larry Page and the co-founder of Google, Sergey Brin, will assist the CEOs where needed and pick up the tasks of capital allocation and figuring out compensation.
Larry Page assumes the role of CEO of Alphabet and Sergey Brin will act as the conglomerate’s President. Sundar Pichai, the man who has been heading Product and Engineering at Google’s internet services since last year has been tapped as the new CEO of the “new” separate company, Google.
The other Google companies that fall under this alphabet include Calico (the division working on longevity research), Life Sciences (the team developing contact lenses tech), X Labs (the team developing next gen tech like self driving cars and internet balloons), Nest (the thermostat division), Fiber (Google’s bet on broadband) and Ventures (the startup ventures company).
This new structure seems like a very deliberate attempt to maintain the sort of startup independence and identity that gets lost with being a sprawling tech giant. According to Page’s statement,
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.
In those words, he has captured the challenges that every evolving tech company experiences once it adopts the cloak of corporate identity.
Looking at the alphabetization of Google and how another tech giant, Alibaba, is structured, the clear impression is that the new playbook for tech company reinvention is all about autonomous units under one big umbrella.
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