Google Rebrands As Alphabet

A recent Security and Exchange Commission filing by Google revealed that it is planning to form Alphabet Inc., a new holding company for the internet search giant. The move of the company is aimed at showing its new operating structure.

Even as a new company is set to be formed, the Google name will continue to be used. Some of the divisions included under the Google business umbrella are ads, apps, maps, search, Android and YouTube, which are basically the more popular businesses of the company. The new company will manage newer business lines, including Calico, Next, Google Capital and Google Ventures.

Google CEO and co-founder Larry Page revealed that while the company is still operating well, they think it is necessary to make it more accountable and cleaner. Due to this, they decided to create a new company. Page will serve as the CEO of the new company while Sergey Brin will serve as its president.

Page added that Alphabet, Inc will be a collection of different companies with Google being the largest. The new Google will be slimmer as companies that are not closely associated with its main Internet products will be managed through the new company.

Google Forms Alphabet - image credit: theregister.co.uk

Page explained further that they consider the changes as an exhilarating new chapter for Google. They liked the name since it is essentially a collection of letters representing language, which is among the most significant innovations of humanity. It is also the foundation of how they index through Google search. They also like its meaning, alpha-bet, which is something they aspire for. He also said they do not intend to create a new consumer brand with a number of related products under it since the companies under Alphabet will become independent and will create their own respective brands.

Google Chairman Eric Schmidt will serve as the Executive Chairman of the new company while Ruth Porat will serve as the Chief Financial Officer and Senior Vice President. Sundar Pichai will become the new CEO of Google.

All the shares of Google will be converted automatically into Alphabet shares and the same rights will be retained by shareholders. Even as the same tickers will be used by the company, financial results of Google will be reported separately from the new company in the fourth quarter earnings report.

Shares of the company increased following the reports of the creation of Alphabet.

Posted by George Daniels on Tuesday August 11 2015, 6:27 AM EST. All trademarks acknowledged. Filed under Technology. Comments and Trackbacks closed. Follow responses: RSS 2.0