Alphabet: The Building Block For a Cleaner and More Accountable Google
Google’s founder, Larry Page announced the creation of the Google’s new parent company Alphabet, with him as the CEO and co-founder of Google, Sergey Brin as the president of Alphabet and transferring his position as CEO of Google to Sundar Pichai.
More than the abc
Although the place holder domain name for the Alphabet company is abc, with URL (http://abc.xyz), as the URL alphabet.com already exists and is owned by another company that is also called “Alphabet”, Larry Page shed some light on the origin of the new company name.
He stated: “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha‑bet (Alpha is investment return above benchmark), which we strive for!”
Alphabet’s business structure would have each of its subsidiary companies run independently with each company having its own CEO, while the CEO and president of Alphabet will be in charge of handling capital allocation and monitoring of each business, giving them a more effective managerial position.
Alphabet Inc will replace Google Inc, with all shares of Google converted into the same number of shares of alphabet. Alphabet would be the parent company for Google and several other subsidiaries which include: Calico, GoogleX, Google ventures, Nest Labs. Google’s scope would also be reduced to take on Internet-centered services(chrome browser, YouTube,, google search engine…)
The Next CEO for Google
Sundar Pichai, Google’s product chief has been working with google for over ten years, and has led the product management and innovation efforts of several of google’s IT software products, including: Google chrome, Google drive, gmail, Google maps, as well as android.