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A few days ago Google announced that it would rebrand itself as Alphabet. It will be a new holding company with Google being a largest 100% owned subsidiary. Larry Page and Sergey Brin, co-founders of the company, made an announcement after the stock markets closed. They disclosed plans for a radical shake-up of Google’s corporate structure and management and officially confirmed that they were going to hand control of its core search engine business to rising star Sundar Pichai. Alphabet will preside over a range of companies, and its site’s new address eschewed convention: https://abc.xyz/
In recent years, Google has come under pressure as its founders have used the enormous success of the brand to advertise autonomous cars, medical research, smart household devices and Internet-delivering balloons. These risky projects caused problems for investors, as they couldn’t understand how exactly the money is being distributed inside the company. Restructuring would allow them to assess Google’s core business more clearly while allowing the company to highlight its other assets.
At the stock market, all shares of Google will automatically convert into corresponding shares of Alphabet and continue to trade as GOOG and GOOGL. It should be noted that shares in Google soared 5% in after hours trading. Larry Page will become Alphabet’s chief executive manager, while Sergey Brin will be its president. They will leave Google, which will be run by their colleagues.
Some industry experts remain skeptical about the level of clarity the restructuring may add to the search giant’s financial statements. For example, it didn’t become clear how much of its quarterly financial data the company wanted to share. It is also unknown whether the company is going to continue its policy of telling investors to be happy with their incomes when talking about major business segments.
Larry Page explained that companies that are pretty far afield of Google’s main Internet products would be contained in Alphabet. The company’s health efforts will have their own chief executives. X lab and Wing, Google’s drone delivery effort, and Nest, its “internet of things” division, will also become non-Google divisions of Alphabet. The same can be said about Google Fiber, the company’s broadband arm, and its investing arms, Google Ventures and Google Capital.
In recent years, Google has come under pressure as its founders have used the enormous success of the brand to advertise autonomous cars, medical research, smart household devices and Internet-delivering balloons. These risky projects caused problems for investors, as they couldn’t understand how exactly the money is being distributed inside the company. Restructuring would allow them to assess Google’s core business more clearly while allowing the company to highlight its other assets.
At the stock market, all shares of Google will automatically convert into corresponding shares of Alphabet and continue to trade as GOOG and GOOGL. It should be noted that shares in Google soared 5% in after hours trading. Larry Page will become Alphabet’s chief executive manager, while Sergey Brin will be its president. They will leave Google, which will be run by their colleagues.
Some industry experts remain skeptical about the level of clarity the restructuring may add to the search giant’s financial statements. For example, it didn’t become clear how much of its quarterly financial data the company wanted to share. It is also unknown whether the company is going to continue its policy of telling investors to be happy with their incomes when talking about major business segments.
Larry Page explained that companies that are pretty far afield of Google’s main Internet products would be contained in Alphabet. The company’s health efforts will have their own chief executives. X lab and Wing, Google’s drone delivery effort, and Nest, its “internet of things” division, will also become non-Google divisions of Alphabet. The same can be said about Google Fiber, the company’s broadband arm, and its investing arms, Google Ventures and Google Capital.