Today, Google announced that they will undergo reorganization to better represent the growth that the company has seen in the past few years. As a result, Google the company will be now branded as Alphabet.

The big news here is that Google the internet services company will become one subsidiary of the larger Alphabet company - and said subsidiary still operating under the name Google - with the goal of better seperating Google's core business from what are now Alphabet's more experimental, far flung ventures. Consequently this change will see current parts of Google like X labs, Calico, Life Sciences, and other ventures shifted over to Alphabet. Meanwhile web services and software like Android, Maps, and Gmail will remain under the Google brand.

Organizationally, Larry Page will remain CEO of this reorganized company, and Sergey Brin will be President. Sundar Pichai will also be CEO of the new Google. Google stock is also immediately being converted over to Alphabet stock, and going forward Alphabet will be the reporting company, however Google-the-subsidiary results will be broken down and reported as part of Alphabet's results.

Ultimately it remains to be seen what effects this will have on the Google that we’ve known for the past few years. However given that the management structure has remained relatively constant in this move I suspect that business will continue on as usual.

Source: Google Official Blog

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  • anandreader106 - Monday, August 10, 2015 - link


    ALPHA - The abnormal rate of return on a security or portfolio in excess of what would be predicted by an equilibrium model like the capital asset pricing model (CAPM).

    BET - an act of risking a sum of money on the outcome of a future event.

    Essentially, Alphabet will own a large portfolio of companies, make bets on the future and outperform expectations. It's a phenomenal name from that perspective.
  • DBissett - Monday, August 10, 2015 - link

    Interesting move by the megalomaniacs who run Google, to name themselves with a noun that fundamentally references civilized knowledge, "alphabet", the root of language, maybe since we climbed out of caves. This should not be allowed, but not allowed by who? Imagine in the future your little ones learning of the "alphabet" in school. How much free advertising will that be, and to what degree will their growing minds intertwine the language function of the alphabet with this monolithic company that has such a grandiose monopolistic self-image? This is no accident. You can bet the originators of this idea were giddy when they came up with it.
  • Sheninat0r - Monday, August 10, 2015 - link

    so i guess you don't like windows, apple, adobe, nest, sprint, and amazon either?
  • mkozakewich - Tuesday, August 11, 2015 - link

    To be fair, few people in first-world countries work with adobe.
  • Impulses - Monday, August 10, 2015 - link

    Yes, because kids these days just can't tell their juice box from their phone and that's how Cuppertino totally hooks them early...

    And what of those poor brits, is it a fruit, is it a tech company, is it a media company, or is it a music label (the string of lawsuits involving that notwithstanding).

    How they can keep it straight, I just don't know.
  • whiteiphoneproblems - Monday, August 10, 2015 - link

    Good grief -- it's a tech holding company name, not even a public-facing brand. School kids will probably hear of it very little!
  • tygrus - Monday, August 10, 2015 - link

    How do the expect to trademark and protect the corporate name "Alphabet" ? Or are they trying to stop us from using English words without compensation ?
  • aryonoco - Monday, August 10, 2015 - link

    They clearly say that Alphabet will not be a consumer facing name, this is to allow each subsidiary to manage its own identity independently.

    Larry Page had openly talked of his admiration for Warren Buffett. This is effectively the same organisational model as Berkshire Hathaway. Not very surprising.
  • Alexvrb - Tuesday, August 11, 2015 - link

    Yeah nothing makes me want to buy Google products like knowing that they're actively patterning themselves after Berkshire. There's some interesting articles floating around about just that topic. Some of these entities do a fantastic job of lurking behind their subsidiaries.
  • whiteiphoneproblems - Monday, August 10, 2015 - link

    ALPHABET is a perfectly distinctive and protectable mark for tech services and whatever else they offer, if they choose to use and register it as such. (And they wouldn't be stopping anyone from using the word in its ordinary sense!!)

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