Internet giant Google has announced its new holding company
called Alphabet, with the company taking abc.xyz URL, but rather surprisingly, not
the associated Twitter handles.
Google will form the main part of the company, but Alphabet
will also include a number of other initiatives led by Larry Page and Sergey
Brin, who are the company's founders. Google shareholders will now become
shareholders of Alphabet Inc. but the company will trade on Nasdaq under the
old ticker symbols, GOOGL and GOOG.
Larry Page wrote in a blog post;
"Alphabet is mostly a collection of companies. The
largest of which, of course, is 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. 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).”
Alphabet will be led by Page as CEO of Alphabet and Sundar
Pichai will take over as CEO of Google. Pichai joined the corporation back in
2004 and has been involved in the development of Google projects and products including
Gmail, Google Maps, Chrome and Chrome OS. He took over the role of Android head
in March 2013 from Andy Rubin.
Page continued;
“Fundamentally, we believe this allows us more management
scale, as we can run things independently that aren't very related. Alphabet is
about businesses prospering through strong leaders and independence.
"In general, our model is to have a strong CEO who runs
each business, with Sergey and me in service to them as needed. We will
rigorously handle capital allocation and work to make sure each business is
executing well. We'll also make sure we have a great CEO for each business, and
we'll determine their compensation."
"Sergey and I are seriously in the business of starting
new things. Alphabet will also include our X lab, which incubates new efforts
like Wing, our drone delivery effort. We are also stoked about growing our
investment arms, Ventures and Capital, as part of this new structure.
"We liked the name Alphabet because it means a
collection of letters that represent language, one of humanity's most important
innovations, and is the core of how we index with Google search!
"We also like that it means alpha-bet (Alpha is
investment return above benchmark), which we strive for! I should add that we
are not intending for this to be a big consumer brand with related products -
the whole point is that Alphabet companies should have independence and develop
their own brands."
However, the name Alphabet has caused quite a storm in the
world of leasing, as BMW-owned leasing giant, Alphabet International, has
announced a statement confirming that “the possibility of any trademark
infringement is currently under review”.
We will keep you posted with all developments but in the meantime,
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