Larry Page, CEO of tech giant Google, announced in a blog post called “G is for Google” that a new company called Alphabet would be formed in order to retain the organisation’s unconventional values.
The blog post explains that Alphabet will be a collection of companies, with Google being the largest, but will be scaled down in the future, as internet products will be held within Alphabet. Page and co-founder Sergey Brin believe that this will allow for more independence and a restructure of management as they intend to have one CEO for each business.
11 years ago, Page and Brin wrote in the original company founders letter that Google is not a conventional company and they do not intend on being one. “We also said that you could expect us to make smaller bets in areas that might seem very speculative or even strange when compared to our current businesses,” the blog noted.
Page continued to say that as a technology company, revolution is needed to ensure growth and to remain relevant, these changes must be made. He will become CEO of Alphabet and Brin will be President of the new business.
The CEO explained the name change to be the start of an exciting new chapter for Google. “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search”, Page said.
Alongside this, Sundar Pichar will be named as the new CEO of Google, who previously worked on product and engineering for the internet sector of the company. Page comments on Pichar’s capability, as well as his progress and dedication to Google. “I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations,” Page wrote in the blog.
On an important note, Google Inc. will be replaced by Alphabet Inc and all shares will be automatically converted to Alphabet but will continue to trade on Nasdaq as GOOGL and GOOG.
