BrandArena: Google to become Alphabet Inc in structure shakeup

Tuesday 11 August 2015

Google to become Alphabet Inc in structure shakeup

Google has announced a radical restructuring of the company in which it will become a subsidiary of a new entity called Alphabet, while at the same time getting itself a new CEO.

Google co-founder Larry Page announced in a blog post Monday that he is now CEO of Alphabet, a new "collection of companies" that includes Google, Life Sciences and Calico. Sergey Brin, Page's co-founder of Google, will become president of Alphabet and Eric Schmidt will be its executive chairman.

announced the shock move in a blog post on Monday, saying: "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, as president."

Meanwhile, Sunder Pichai, Google's former senior vice president of products, will be taking over as Google CEO.

The largest of the companies under Alphabet's wing will be a new, slimmed down version of Google, along with the Calico, Nest, Fibre, Google Venture, Google Capital and Google X businesses.

Even as it's folded into Alphabet, Google will retain its Search, Maps, Android, YouTube and ad businesses.

"Alphabet is mostly a collection of companies. The largest of which, of course, is Google. 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," he said. "This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside Google."

Page added that Alphabet will not become a consumer-facing brand but merely act as the umbrella for the Google ecosystem of products and services that currently exist.

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