Yes, I am kind of surprised about this! Google thinks forming a brand new company called Alphabet will be better for the tech giant. Most of the current Google products like Google Search, YouTube, Android, and other Google products will be a part of this new venture. And I feel like this is something Google is doing to limit the damage when one of its ventures fails. And they are doing something similar like what Warren Buffett’s Berkshire Hathaway does, own a bunch of companies under one umbrella. This is what Google is doing with Alphabet.
The stock will be changing over from Google to Alphabet, but will still be trading under GOOGL and GOOG. According to Larry Page’s letter on the new Alphabet website. He said:
Our company is operating well today, but we think we can make it cleaner and more accountable. So 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.
Yep, Alphabet will be mostly a collection of companies including Google. Oh, and Google has a new CEO named Sundar Pichai. Also according to the letter, Alphabet aims to:
- Getting more ambitious things done.
- Taking the long-term view.
- Empowering great entrepreneurs and companies to flourish.
- Investing at the scale of the opportunities and resources we see.
- Improving the transparency and oversight of what we’re doing.
- Making Google even better through greater focus.
- And hopefully… as a result of all this, improving the lives of as many people as we can.
So what do I think of this? I think this is a very good move for Google! I think Alphabet will be soon acquiring something, many think that Google, now Alphabet might be buying up Twitter. Something like this will make it easier for Alphabet to run and monitor. Not all current Google products are going to Alphabet, Nest for example will stay independent, but report to Alphabet. Google and Alphabet have probably started a new trend in the tech world. Will Apple soon become part of something larger? Hey, it could happen!
At least many on Twitter had some fun with this news!
Some on the internet have wondered if Google created Alphabet to keep Sundar Pichai away from Twitter? Either way, welcome Alphabet to the geeky and nerdy world! I wonder if Sesame Street has anything to say about this?