The ABC of Google’s operating structure has undergone a massive transformation. As per the brand new structure, Google will be one of the sister companies of a company called Alphabet which will be headed by Larry Page as CEO, and Google Inc. will advance under the leadership of its current CEO, Sundar Pichai. In a nutshell, we can say that Google has turned into Alphabet.
Outline of Corporate structure of Alphabet will be:
Executive team will be the Parent company called Alphabet:
Google life sciences division, Google X, investing divisions like Google Ventures and Google Capital and many other ambitious projects of Google such as Nest, driverless cars and many others will be seperate entities and will be supervised by Alphabet.
Google Inc. will be taking care of core businesses of the company, which also forms the main revenue source for Google: Android and the related technical infrastructure, maps, apps, YouTube, search and ads.
But now the question arises, what made silicon valley giant undergo such a large scale overhaul:
At first glance everything seems fine, nothing much appears to have undergone any kind of revision. Taking share distribution under consideration, shares of Google will be transferred into same number of shares of Alphabet along with the same rights. But beneath surface things don’t look as simple as they seem to be.
No doubt this will be a fresh start for the company and will be a chance to do things in a better and more organised way and it will provide better insights and more options for investors while spending their money, as Google announced financial results of Alphabet division and Google’s core division will be calculated separately. So, investors will be having more clarity while making investments.
Google never had plans to be one of the conventional companies as founding fathers of the company wrote in founders letter:
“Google is not a conventional company. We do not intend to become one.”
Recently, Google has made 144 acquisitions from different sectors with little or nothing in common and is now building a new parent company, Alphabet. It all sums up that Google is planning something big, really big.