Don’t worry, you’ll still be able to say, “let me Google that.”
Google co-founders Larry Page and Sergey Brin published a blog post yesterday that announced the tech giant will rebrand itself as Alphabet, a new holding company of which Google will be the biggest subsidiary. The main purpose of the restructure is to allow Google’s visionaries to make “smaller bets in areas that might seem very speculative or even strange when compared to [their] current businesses.”
Previous ventures have included the development of autonomous cars, smart household devices, internet-delivering balloons and cutting-edge medical research, all relatively modest for what could be on the horizon.
It also allows them to launch a pretty badass URL (https://abc.xyz/).
Its current corporate structure currently best described as an indecipherable abyss, the new shift gives investors greater oversight of what’s actually going on at Google and how the company spends its money. “It’ll give people a truer picture of the nature and specifics of Google’s core operation,” says BGC Partners technology analyst Colin Gillis.
First instinct, of course, is to assume it also allows for some creative flexibility when it comes to taxes.
Silicon Valley’s brightest rising star, Sundar Pichai will be appointed CEO of the slimmed down Google, while Page, Brin and a handful of other top executives will leave the subsidiary to take up roles at Alphabet. Page will become Alphabet’s CEO, while Brin will be its president.
Many analysts liken the move to that of Warren Buffett’s when he launched Berkshire Hathaway, a multinational conglomerate holding company with global subsidiaries like GEICO, Dairy Queen, and Helberg Diamonds under its umbrella.
Boring corporation restructure aside, we can’t wait for the off the rails endeavours Alphabet will be able to afford itself with this new flexibility.