The Google founders Larry Page and Sergey Brin have today announced a restructuring to Google, running it within a brand new company called Alphabet that has been designed to put Google and a “collection” of other companies under Alphabet.

Under this new restructuring Sundar Pichai will become the new CEO of Google, whilst Page takes the role of CEO of Aplhabet and Brin as President. Omid Kordestani will take the role as Advisor to Alphabet and Google, whilst YouTube will remain under Google and retain its own CEO, Susan Wojcicki.

Alongside Google, Alphabet will also run X Lab, the investment arms Ventures and Captial, and Calico and Life Sciences.

“This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead,” Page explains.

“In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation.”

“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,

They also revealed that they will be providing Google’s financial information for Q4 separately from Alphabet’s, however Google is now a wholly owned subsidiary of Alphabet.

This means that Alphabet Inc will replace Google Inc. in the public sector, with all shares in Google automatically converting to shares in Alphabet.

However I am sure that the name is the biggest thing you are wondering, and thankfully Page explained: “It means alpha?bet (Alpha is investment return above benchmark).”

Source: Alphabet

[Update]

TechCrunch have posted an interesting article that may show some hurdles for the new company, Google doesn’t own Alphabet.com, BMW does. On top of that it does not own the @alphabet Twitter account, a dude in Ohio does, it doesn’t own @abc, ABC does and it doesn’t even own @abcxyz despite it having to settle on the abc.xyz domain name for its site.

And to top it all off their Twitter account @aIphabetinc has to have a capital “I” instead of a lower-case “l” because @alphabetinc was already taken, making the whole process just that little bit more confusing.

Source: TechCrunch

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