Google Inc. is changing its operating structure by setting up a new company called Alphabet Inc. which will include the search engine business and a number of other units. Based in California, the co-founders of Google are to take up top positions in the company, with Larry Page as the CEO and Sergey Brin as the President of Alphabet Inc.
Sundar Pichai, former Senior Vice President of products, is to become the CEO of Google replacing Larry Page.
|1||What is Alphabet? A collection of companies, the largest of which will be Google. Alphabet will include businesses like Google X, Calico, Google Capital, Google Ventures etc.|
|2||Why the name? They chose the name Alphabet as it is a collection of letters which represent a language, which is the core of how they index with Google search.|
|3||The company was created in order to make management of all their businesses easier. Google will be slimmed down by removing subsidiaries from Google that are not related to their main internet product and placing them under Alphabet.|
|4||Alphabet Inc will replace Google Inc as the public-traded entity and all shares of Google Inc, will automatically be converted to the same number of shares of Alphabet.|
|5||•All companies under Alphabet will have independence to develop their own brand rather than developing Alphabet as brand itself.|
|6||The creation of Alphabet is said to make the company more fiscally accountable. The company will be reporting financial results in segments, which will give a clearer picture of how the business is performing, making it more transparent for investors.|
|7||Alphabet will allow the leaders to focus on more creative and ambitious projects like the glucose sensing contact lenses and their drone delivery project Wing.|
|8||Google doesn't yet own Alphabet.com, so instead abc.xyz is the home of Google's newest company.|
|9||Other projects that are under development include self driving cars, Internet balloons and Google Glass.|
|10||Google will become a wholly-owned subsidiary of Alphabet. The company’s stocks were up by 5 per cent after the announcement made by Larry Page.|