In an effort to reshuffle their company, Google has made a new parent company which will now, for all intents and purposes, own Google itself. Alphabet, as it’s called, is a new company which is in control of Google’s reshuffled business empire of assorted odds and ends and projects.
Google recently tangled with the EU over the company’s structure, with the EU saying that is represented a monopoly on search engines, but apparently the split isn’t related to the two locking horns. Instead, Alphabet represents an umbrella company for more diverse projects spawned by the original Google, as well as Google itself.
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All you need to know is for the mean time the original Google will continue to maintain control of Google internet services such as Google Maps, YouTube, Chrome, and Android – but some of the more wacky Google departments such as research and development hub X Lab, home automation system Nest and Googles internet drone arm will be off on their own as separate ventures.
“Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. Alphabet is about businesses prospering through strong leaders and independence,” Google co-founder Larry Page wrote in a blog post on the matter.
The structure of Alphabet is still firmly at the whim of Sergey Brin and Larry Page, who have been firmly at the helm of Google since the very beginning. The pair are renowned as two of the pioneers of the Google internet and search engine technology we all use today.
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“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. We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation,” Page said.
Whilst it’s not a major problem for end users it does mean investors and shareholders will have a better idea of just what Google companies are earning. Speculatively this could also mean that Alphabet may itself be looking to acquire new companies under its umbrella in the near future.
Via: BBC News
Via: Business Insider UK