Google Announces New Parent Company 'Alphabet'
Google created a new umbrella company to oversee its renowned Internet business along with every company that the tech giant has ever created or acquired.
Google's new holding company, which is called Alphabet, will be run by Google founders Larry Page and Sergey Brin. Page will be CEO of Alphabet while Brin will serve as president. Meanwhile, longtime Google executive Sundar Pichai will become CEO of Google and run its search engine, online advertising operation and YouTube video service. Pichai is also said to be the potential successor to Page.
Page said that the name of the new company was "inspired by the collection of letters that represent language, one of humanity's most important innovations," he said, according to CNN. The name also refers to "alpha bet" since alpha is an investment term that means returns above benchmark.
According to CNN, "Google's move is meant to give new life to so many of its existing properties. Google practically already has the entire alphabet covered with its various acquisitions, side projects, moonshots and spin-outs. Formally, Alphabet's structure has yet to be completed, but recent SEC filings reveal the proposed structure."
Google will be just one of the many subsidiaries that will operate under Alphabet. Other ventures include Nest, which makes Internet-connected home appliances, and Calico, which is conducting cutting-edge health research.
With the reorganization, Page signaled that he wants to give more authority to CEOs of the companies that will be part of the new entity known as Alphabet.
"Our company is operating well today, but we think we can make it cleaner and more accountable," said Page, reports The Associated Press. "We believe this allows us more management scale, as we can run things independently that aren't very related."
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