In continuation with its traditional way of doing things, quite untraditionally, Larry Page, the founder of Google Inc has announced his new found entity, christened ‘Alphabet’.
As per the blog post written by Larry Page, this new umbrella organization will have Google as one the subsidiaries among many others. Hence, Google will continue to have its identity intact.
Announcing this major development, Larry Page said, “Google is not a conventional company. We do not intend to become one.” As part of that, we also said that you could expect us to make “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses. We did a lot of things that seemed crazy at the time. Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. And we haven’t stopped there. We are still trying to do things other people think are crazy but we are super excited about. 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.
What is Alphabet?
Larry Page describes Alphabet as mostly a collection of companies. The largest of which, will be Google itself. “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. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related.” Explains, Larry Page, CEO, Alphabet.
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 and two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.