Published: October 10th, 2015
Google is now Alphabet and Alphabet is now Google? In August of this year Google announced they would be creating a new public holding company, Alphabet. It was marked as a “restructuring” for the various subsidiaries of Google Inc. by CEO Larry Page. Thus, making Alphabet the umbrella company to all of Google’s companies and ventures. Now even Google will be slimmed down and focus on it’s products that it oversees, like their search engine, maps, Android and Youtube. Over the years Google has invested capital into numerous projects ranging from self-driving cars to Wi-Fi balloons floating in the Earth’s stratosphere.
Although this restructuring might seem strange, Google is looking to be more transparent to investors on the stock market. Investors will now receive financial reporting from the new restructured Google separately from Alphabet and its subsidiaries. Each company under Alphabet will now receive it’s own CEO as well. These subsidiary companies under Alphabet will also do their own hiring, write their own contracts and even plan their own marketing campaigns. All with the intention of letting these companies move a little quicker, fostering independence and efficiency.
Some of the companies under Umbrella include Calico, a life longevity research company aiming to improve the length and quality of human life. Another includes Google X, which has been the research lab that has been working on the self-driving car and other ideas like unmanned flying delivery vehicles, and Google Glass.
Despite Google’s recent privacy concerns, this looks like a great move for them as a company. Many financial experts relate Google’s successes now to GE, whose light bulb became the foundation for its move from the lighting-related market to oil, home appliances, and even financial services. This means that Alphabet will now have a stronger presence in every aspect of the market and we will be seeing much more of the company in the future.