Google Inc. recently unveiled a surprise restructuring of its business. This restructuring separates its search and highly profitable advertisement business from fledging efforts in an array of so-called moonshots.
So what happens to "Google"?
The name "Google" is not dead yet. Divisions under the google business, will precisely include search, ads, maps, apps, YouTube and Android - essentially the best known businesses of Google. According to Larry page - "This newer Google is a bit slimmed down".
Sundar Pichai, the current vice president of products will become the new CEO of Google. According to a blog post by Larry- "I have been spending quite a bit of time with Sundar, helping him and the company in any way I can, and I will of course continue to do that. Google itself is also making all sorts of new products, and I know Sundar will always be focused on innovation—continuing to stretch boundaries. I know he deeply cares that we can continue to make big strides on our core mission to organize the world's information."
However, Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
So who is going to head "Alphabet"?
It is headed by Google's co-founders: Larry Page, its chief executive officer, and Sergey Brin, its president. Some other sources suggest, Eric Schmidt will act as chairman and Ruth Porat as the CFO of the Company.
Why "Alphabet"?
Page went on to explain:
Let's keep our fingers crossed and wait for "Google" oops "Alphabet" to show some real return on investments. This also gives them the structure to add in another business line if they were to acquire something. The mechanism is in place. On announcement of this news, Shares popped on the news. By around 5 p.m. the stock was up close to 5.5% from Monday’s closing price of $633.73.
So what happens to "Google"?
The name "Google" is not dead yet. Divisions under the google business, will precisely include search, ads, maps, apps, YouTube and Android - essentially the best known businesses of Google. According to Larry page - "This newer Google is a bit slimmed down".
Sundar Pichai, the current vice president of products will become the new CEO of Google. According to a blog post by Larry- "I have been spending quite a bit of time with Sundar, helping him and the company in any way I can, and I will of course continue to do that. Google itself is also making all sorts of new products, and I know Sundar will always be focused on innovation—continuing to stretch boundaries. I know he deeply cares that we can continue to make big strides on our core mission to organize the world's information."
However, Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
So who is going to head "Alphabet"?
It is headed by Google's co-founders: Larry Page, its chief executive officer, and Sergey Brin, its president. Some other sources suggest, Eric Schmidt will act as chairman and Ruth Porat as the CFO of the Company.
Why "Alphabet"?
Page went on to explain:
"For Sergey and me this is a very exciting new chapter in the life of Google — the birth of Alphabet. 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! 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."
Let's keep our fingers crossed and wait for "Google" oops "Alphabet" to show some real return on investments. This also gives them the structure to add in another business line if they were to acquire something. The mechanism is in place. On announcement of this news, Shares popped on the news. By around 5 p.m. the stock was up close to 5.5% from Monday’s closing price of $633.73.
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