Google has made a very curious and also shocking decision. The famous company announced that it had changed its name to Alphabet Inc. In fact, Alphabet is a company created by the tech giant to house all its businesses. Google will operate as a subsidiary of Alphabet, it has been revealed.
However, the newly created company will also be run by the co-founders of Google, Larry Page and Sergey Brin. Google will have a new CEO, Sundar Pichai, while Page will be the CEO of Alphabet, Brin will be president and Eric Schmidt will be executive chairman. The reason for the creation of this company was actually explained by Larry Page in a regulatory filing. “Our company is operating well today, but we think we can make it cleaner and more accountable,” he said.
When it comes to the changes that the new company will bring, Alphabet will actually be a collection of companies. Google will be the largest of all, but the tech giant will suffer some changes. This means that the companies that were until now considered to be part of Google, but were not related to the Internet business, will be moved under the bigger company Alphabet. User should not worry as the most famous Google brands, including Android, Chrome and YouTube, will remain under Google.
Well, after all this idea is not something new for big corporations. Moreover, Page has previously claimed that he wanted to oversee a group of semi-independent businesses that would function under the Google umbrella. And it seems that he believes that this would be helpful from the managerial point of view. “Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related,” Page claimed.
Analysts claimed that with the new organization, Google is aiming to become a more diversified company. This is also believed to be an opportunity for the tech giant to expand its business and be more successful while summing companies that run independently, although they report to the same body. Page also said that he hoped that this would help Google’s intention of becoming a more transparent company.