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Google Merges Into Alphabet, A New Holdings Company


Google is no longer a company. It is now a subsidiary, belonging to a holdings company and conglomerate called Alphabet. The company was created by ex-Google CEO Larry Page, in a move to reorganise the portfolio.

Alphabet will have all of Google’s ex-management, which includes Sergey Brin as president, Eric Schmidt as executive chairman and Ruth Porat as chief financial officer. Google, now a subsidiary that holds Maps, Search, Android, YouTube and Ads, will be run by Sundar Pichai.

The Indian-born manager already ran all of Google’s services, but now has the CEO title.

Other branches of Google will now be separated under the Alphabet umbrella. Nest Labs will be lead by Tony Fadell; Ventures by Bill Maris; Capital by David Lewee; Calico by Arthur D. Levison; X Labs by Astro Teller; Fiber by Craig Barratt and Sidewalk Labs by Dan Doctoroff.

It is still not known if DeepMind Technologies and Project Loon fit under the Google/Google X team, or will be their own division.

Having the umbrella corporation should allow Page more time to acquire and work on new ventures. This would have been good for Motorola Mobility, which would have received enough independence to flourish and a lot of cash to regrow its foundation.

Google still commands the largest focus, considering it makes the large amount of revenue for Alphabet. Surprisingly, Google will also keep Android and YouTube, instead of making them independent. This might come back to bite Alphabet, which is currently under investigation in by European Union for antitrust.

In the future, new ideas and businesses will be added either into a division or will be independent. Say, if Twitter were to be acquired by Google for $25 billion tomorrow, it would most likely be inside Google but remain independent. However, if Tesla Motors was acquired, it would be outside of Google but inside the Alphabet conglomerate.  

Alphabet will continue trading as GOOG.



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