Founders of Google, Larry Page and Sergey Brin confirmed that a new company named Alphabet is now being formed.
Google will no longer be the tech giant under which every wing operates. Instead, Google will be under Alphabet and will operate as an individual wing that will continue to be the biggest search engine provider in the world. All services including Google Plus, Youtube and Labs will operate but the idea is to segregate each brand so that they could survive individually.
With this acquisition, Sundar Pichai has been appointed as the new CEO who will now pioneer the Google and the Android division together while Page and Bring will focus on all the innovative ideas including the automatic car, glass among other products.
Publicly Traded Entity
Alphabet has been announced as a publicly traded entity but it will continue to handle shares under the same name as GOOG, GOOGL on Nasdaq.
No More a Search Engine
The primary objective of the team is to get rid of the search engine tag that Google has been associated with so long. Alphabet will focus on a wide range of new products and innovations including contact lens designed for medical purposes, autonomous cars, and calico.
Branding Google Individually
A question customers and investors ask is why a search engine wants to create cars, watch or a mobile operating system. The new restructured company will allow them to avoid this question and ensure that people who like to invest in Google find it as a viable alternative.
Freedom of Ideas
Alphabet will promote all new ideas without fear of losing stocks and shares. It will ensure that innovative minds are not constrained under the name of being a company that only does cloud storage, e-mail and searches. It also allows new brands to grow out of the confines of what Page created decades ago.
New acquisitions are expected to be done in the next few months. Twitter is said to be one company that Google is really interested in. Whatever brand that joins the list will be allowed to operate autonomously so that they don’t fail even if one of their products fail. It’s a good business strategy and good for customers as well.
A great way for the CEOs of different brands within the Alphabet brand to focus on their customers. After all, Google Plus was a bad move but Youtube was an amazing hit. It helps them instantly identify a failure and fix it or at least scrap it.