Google Rebrands as Alphabet
The founders of Google – that did Internet search, the Mountain View, decided to create an all new parental brand that will manage both Google as well as its other far-flung projects — called ‘Alphabet’, going to be the biggest tech company most people have never heard of. Over time, it has broadened into areas as varied as drones, pharmaceuticals and venture capital, none of which make much money, and some of which have spooked investors. Google’s move is the most significant step by a Silicon Valley giant to get a handle on the sprawl of businesses that it has entered, an issue that increasingly afflicts other technology companies like Facebook and Amazon. While all of these tech companies began as entities focused on one main business, online bookselling or a social network, for example, many have diversified over the years into numerous side businesses including cloud computing, photo sharing and even satellites. The change is an effort to keep Google innovative. As other big technology companies have gotten old, some have been felled by a desire to remain wed to their traditional core businesses. With its new structure, Google can give operating divisions more leeway in making their own decisions and keep the businesses more nimble.
What is Alphabet?
Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead. Alphabet Inc. will replace Google Inc. as the publicly traded company on the Nasdaq Stock Exchange, and shareholders will get one Alphabet share for every Google share they previously owned. The 43-year-old Sundar Pichai rose quickly at Google, from working with the Chrome team to lead both the team as well as Android as senior vice president of Products.