Google is now apart of a larger collection of companies called Alphabet Inc. Yes, that’s right Google is no longer the name of the publicly traded company that owns X-labs or other moonshot projects. The new CEO of Google is Sundar Pichai with the new CEO of Alphabet is Google’s former CEO Larry Page, and Sergey Brin will serve as the president. Alphabet will replace Google Inc. as the business traded on the stock market.
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes,” Page said of the news. “But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.” Uncomfortable indeed, and I don’t think anyone really saw this coming.
Page explained that the new firm, Alphabet, is a “collection” of companies that includes Google. “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,” Page said.
One reason they could have separate the companies is to become an alternative to Berkshire Hathaway. It also provides long-term growth and make sure Google will stick around long after they’ve lost ad revenue and lost their number one spot as search provider. Google’s investments already extend well beyond search and smartphones to include the life extension project Calico, its moonshot division Google X and Nest, the home device manufacturer that it acquired for $3 billion last year.
It’s a strange day and somewhat confusing but it’s happening and Google and Alphabet is faring well on the stock market. Tell us in the comments below what you think about this surprising change for Google and Alphabet.