Google Alphabet Spells Out New Corporate Structure - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Applications
News
8/11/2015
06:06 AM
Connect Directly
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Google Alphabet Spells Out New Corporate Structure

Larry Page will become the CEO of a company called Alphabet, an umbrella operation. Google will operate under it, with Sundar Pichai as its CEO.

11 Clever iPhone 6 Hacks
11 Clever iPhone 6 Hacks
(Click image for larger view and slideshow.)

Google has given birth to its future parent company, Alphabet, a freshly formed umbrella organization under which Google and the company's current subsidiaries will be reorganized and realigned.

Larry Page said he will serve as the CEO of Alphabet, assisted by Sergey Brin as president. Google, in somewhat diminished form, will be led by Sundar Pichai, who is presently SVP of products at the company.

"Alphabet is about businesses prospering through strong leaders and independence," said Page in a note posted to the Alphabet website. "In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well."

[ Where does Google Street View go? Check out 10 Wildest Google Street View Adventures. ]

Page and Brin intend to focus on Google X, which has been working on "moonshot" research projects such as self-driving cars, smart contact lenses, and drone-based deliveries (and on growing Google Ventures and Google Capital), all of which will be presumably rebranded without the Google name. Google's cofounders will also oversee other Google businesses, such as Calico, Nest, and Google Fiber as Alphabet companies.

(Image: Alphabet)

(Image: Alphabet)

Google will be left with "search, ads, maps, apps, YouTube and Android and the related technical infrastructure," according to the company's Form 8-K filing. This new structure may help Google with regard to its troubles in Europe, where authorities have challenged its search and mobile business practices.

According to Brin, Alphabet will replace Google as the publicly traded entity. At the conclusion of the process, Google shareholders will become Alphabet shareholders, though Alphabet shares will continue to trade under GOOGL and GOOG. Alphabet expects to report its financial results under the new structure in Q4 2015. 

Google's executive team -- executive chairman Eric Schmidt, chief financial officer Ruth Porat, and SVP and chief legal officer David Drummond -- will join Alphabet, with Porat simultaneously continuing as CFO of Google. Omid Kordestani, chief business officer at Google, will change roles to become an advisor to both Alphabet and Google.

Google's last reboot occurred in 2011, when Page took over for Eric Schmidt, who had been appointed in 2001 to provide "adult supervision" when the company's founders were still youthful enough to make investors worry that their funds would not be applied responsibly.

In a nod to HBO's satirical gem Silicon Valley, which pokes fun at Google, Facebook, and their ilk through a fictional company called Hooli, Alphabet's website includes a hidden link that points to http://www.hooli.xyz/.

The Hooli website explains, "HooliXYZ is Hooli's experimental division. The dream kitchen. The moonshot factory. The laboratory of possibility. The midwife of magic. The womb of wonders."

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful ... View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
jastroff
100%
0%
jastroff,
User Rank: Ninja
8/11/2015 | 9:50:42 AM
Alphabet!
Well, it's about time - demonstrates the size and versatility of the Company. Will make judging a "bottom line" for each business easier, and recruiting people into specific areas. Downside is the competition and popularity contest that will now be formally codified.

Can Facebook be far behind?
GAProgrammer
100%
0%
GAProgrammer,
User Rank: Ninja
8/11/2015 | 1:52:30 PM
Re: Alphabet!
I dunno - there is a LOT of weight in the Google name and this Alphabet will diminish that. Google as a "moonshot" type company will become smaller and the other companies will all have different names, diluting the Google brand. 

It will interesting to see how this all plays out. Either Alphabet will replace Google's place in the tech world as a leader or it will be a disaster. Should be fun to watch either way!
jastroff
50%
50%
jastroff,
User Rank: Ninja
8/11/2015 | 4:59:03 PM
Re: Alphabet!
Well, Alphabet comes before Amazon in the alphabet....that's cool

I'm thinking about GE -- how they grew, and expanded. 

Anyway, Wall St likes it - and thinks it's overdue.

will it impact product? 
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll