Google Names Alphabet Inc. Its Umbrella Company
Google does not stop. The founders Larry Page and Sergey Brin once said they are not a regular company and do not intend to be one. They continue to make good on their promise. In a blog post on Monday, August 10, Page announced the company’s new mothership name—Alphabet.
The concept is simple: Alphabet is supposed to allow greater mobility for Google to continue its various business ventures and entities, even when they’re unrelated. It is also expected to increase transparency for investors. The announcement incited a surge in stock value (yet again), this time by 6%.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google,” said Page. “Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.”
Page and Brin will be the CEOs of Alphabet with Sundar Pichai stepping in as CEO of Google. “Sergey and I have been super excited about his progress and dedication to the company. And it is clear to us and our board that it is time for Sundar to be CEO of Google,” Page said of Pichai. “I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations.
Whether or not the intended goals of the restructuring will be reached cannot be known. At the moment, the general public reaction seems positive and investors are happy. The Business Rich will continue to follow its journey.