Maybe you’ve heard the news about Google, and its brand new parent company ‘Alphabet’. But if you haven’t, here’s our bite-sized breakdown of all the main points you need to know:
1. Google Has Been Restructured
Google has always had its fingers in lots of pies. From driverless cars to anti-aging technology, Google owned several sub-companies that all did very different things.
Alphabet has been created as a parent company, to tie all of the Google sub-companies under one big umbrella. Google is now one of these sub-companies, instead of being the big company at the top of it all.
Essentially, this is a way of giving each of the different projects their own individual identity, instead of having them all linked with Google.
2. Larry Page is still in charge of everything
Larry Page, the founder of Google, has stepped down as CEO of Google, and stepped up as CEO of Alphabet.
This means he is still in charge of… well, everything he was in charge of before. But because each side project of Google is now becoming its own distinct company, each will get its very own new CEO, who will each report to Larry Page.
He has also brought his original business partner Sergey along as President.
3. Sundar Pichai is the new CEO of Google
Sundar Pichai joined Google in 2004, and has spent the last decade climbing the ranks.
According to Larry Page in his recent announcement, Sundar has been “saying the same things [as Larry Page]… and sometimes better, for quite some time”.
He will now step up as CEO of Google.
4. Android, YouTube, Maps and Google Apps will remain part of Google
Most of the core Google products you probably know and love, such as YouTube and Maps, will remain part of the Google sub-company.
For the most part, it is the quieter ‘background projects’ that are being split off and given a new identity and lease of independence.
5. Alphabet will not be producing any products or services
If you visit Alphabet’s website (we love the URL: http://abc.xyz), you’ll notice that it doesn’t really tell you much at all. This is because Alphabet exists to simply tie everything together under one roof – it will not be creating or launching any products or services under the Alphabet brand.
What do You Think of the New Structure?
It’s a pretty interesting move, but we think it makes a lot of sense – there will be more transparency (we hope), and less confusion.