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Google restructures, becomes part of Alphabet

by Mark Tyson on 11 August 2015, 10:09

Tags: Google (NASDAQ:GOOG)

Quick Link: HEXUS.net/qactnw

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Google announced a surprise restructuring on Monday. It formed a holding company called Alphabet, which will pool together all the operations that made up the former Google, organised in a "cleaner and more accountable," manner.

Alphabet will be run by Larry Page, as the CEO, and Sergey Brin, as the President. The largest part of Alphabet will be a slimmed down Google, with Sundar Pichai as CEO. Pichai will run the new Google, which will now only be composed of core internet-centric services like Search, advertising, Maps, YouTube, Android, apps. So what's left to join 'Google' as a part of Alphabet? There's quite a lot of operations that will be separate parts of Alphabet including; Calico (biotech), Nest (smart homes), Fiber (ISP), Ventures and Capital (investments) and X-lab (moonshoot projects such as self-driving cars and delivery drones).

Alphabet CEO Larry Page wrote a blog post about the reorganisation, explaining the reasons behind the restructuring. Page said that it would be 'comfortable' not to reorganise and things were operating well "but we think we can make it cleaner and more accountable." Going forward the "new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google," thought Page. Each distinct part of Alphabet will have a strong leader and independence.

The stock market has responded well to the changes, which make the structure of Alphabet similar to the likes of Berkshire Hathaway and General Electric, according to Reuters. In after-hours trading Google shares have been up as much as seven per cent. One of the things that will have cheered investors is the announcement of a plan "to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole". From Q4 it will be easy to see what parts of Alphabet "are bringing in the bacon and which ones are science projects and which ones are long-term bets," Roger Kay, an analyst at Endpoint Technologies Associates explained to Reuters.

You can find the Alphabet home page at abc.xyz. If you inadvertently type in abc.wtf you will be redirected to Microsoft's Bing.



HEXUS Forums :: 7 Comments

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What're the chances that the real reason is to do with the EU antitrust rumblings?
You can find the Alphabet home page at abc.xyz. If you inadvertently type in abc.wtf you will be redirected to Microsoft's Bing.
Well done Microsoft, 10/10 for humour, sorry “humor”.

Going to agree with the various stock markets, splitting Google to become part of the Alphabet group probably makes sense, although I'm sure that there's an argument that perhaps they didn't go far enough and that Android should be split into an Alphabet sub-business too.

Although, (rhetorical question), why does this article keep bringing to mind a certain Poirot story…
The best part of abc.xyz is the cubes on the right inadvertently spelling out M A D S E K Z.
crossy
I'm sure that there's an argument that perhaps they didn't go far enough and that Android should be split into an Alphabet sub-business too.

Wouldn't look good in the financials though - one div making no money directly (you don't buy Android), one div reaping the reward (adverts) driven to it by the first.
Have you guys seen what Chrome has to say about the domain https://abc.wtf !! https://goo.gl/photos/x5J6XpETpCWMRpWv7