In what may become one of the top business stories of 2015, Google co-founder Larry Page announced in a blog post yesterday the formation of a new company — called Alphabet — which will soon act as the parent company of Google, in addition to many of the other non-Internet based companies formerly housed under the Google umbrella.
Page and fellow co-founder Sergey Brin will run Alphabet, with longtime senior VP Sundar Pichai taking over as CEO of Google. Under the Google business, Pichai will be responsible for the company’s internet businesses (search, Maps, YouTube, and, of course, advertising), in addition to the Android mobile OS.
Other business units currently housed under Google — including Nest, Fiber, Google Ventures & Capital, and projects like the company’s self-driving automobiles — will fall under Alphabet. According to Page’s blog post, each business will be equipped with its own CEO, and given the freedom to run as an independent company.
Along with management separation will come individual financial reports for Google and Alphabet as a whole. The move is seen as one designed to give investors more visibility into how Google’s ad business is performing vs. the other projects the company has going.
Alphabet will replace Google Inc. as the publicly-traded entity; shares of Google will be converted to Alphabet stock automatically.
As for the name itself, jokes are already abound about Brin & Page choosing “alphabet” because the company owns everything — from A to Z. Interestingly, the company does not own Alphabet.com (the currently-used URL for the company is https://abc.xyz/) or @Alphabet on Twitter — though, whomever does own those are likely to be in for a nice payoff at some point.
No word yet on a timeline for current Google business units to be transferred under the Alphabet umbrella. As of today, there is no mention of Alphabet on Google’s website.