Google Transitions to Alphabet

Google has recently announced that it will be reorganizing into a holding company, taking on the name Alphabet. The company known as “Google” will now be one of the company companies within the broader organization, as there are numerous projects under the alphabet umbrella.

Over the past several years, Google has expanded far beyond its initial business of Internet search and online advertising. Reorganizing the structure of the company will allow some of its more experimental and far-reaching to have more autonomy moving forward.

“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,” stated Larry Page. “This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google.”

So what exactly is Alphabet comprised of? Under the plan announced yesterday, in addition to the core Google business (Internet search, mapping, and Youtube), there will be the separately managed entities of Google Fiber, Next, and Google Ventures (the investment business).

There will be slight shifts in the management of Alphabet and Google, with CEO Larry Page transitioning to CEO of Alphabet and co-founder Sergey Brin serving as president. Sundar Pichai, who has been a longtime executive with the company, will become the CEO of the core Google Business. But overall, not much of the responsibilities will change from this perspective, as Pichai has been overseeing much of Google’s core business for years now.

For those with investments in Google as the publicly-traded entity, all shares with automatically be converted into the same number of shares of Alphabet. The two class shares — GOOGL and GOOG — will continued to trade on Nasdaq under the same ticker name as well.