Google doesn't want to be named Google. Not anymore.
The search giant rechristened itself Alphabet- a new holding company with Google as its largest subsidiary. Sundar Pichai will be the search engine's CEO.
“As Sergey and I wrote in the original founders letter 11 years ago, ‘Google is not a conventional company. We do not intend to become one.
As part of that, 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’. From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have,” wrote current CEO Larry Page in a blog post.
Since its search engine became a household phenomenon, Google has diversified into devices, medical research, drones, autonomous cars and Internet of Things, where billions have been spent so far. The fresh restructuring should go a long way to assess Google's core business as well as other assets and their finances.
The structural shift also means that all these divisions will have their own CEOs and their own finances to handle, yet will have Alphabet as their guiding light.
If you owned a Google share, it will now become an Alphabet share, even though stock tickers will continue to be GOOG and GOOGL. The slimmed down Google will consist of the core internet business which will include Gmail, Maps and the search engine.
Happy times ahead for Google, not so for other subsidiaries.