The former Google CEO announced in a blog post on Monday
that he is now CEO of Alphabet, a new "collection of
companies" that includes Google, Calico and more. Sergey
Brin, Page's co-founder of Google, will become president of Alphabet and Eric
Schmidt will be its executive chairman.
vice
president of products, will be taking over as Google CEO. Bloomberg last year
dubbed Pichai "the most powerful man in mobile."
Even as it's folded into Alphabet, Google will retain its
Search, Maps, Android, YouTube and ad businesses.
Company representatives did not immediately respond to a request
for comment from The Huffington Post.
Investors should know that Alphabet Inc. will replace Google on
the stock market, though Page wrote that "all shares of Google will
automatically convert into the same number of shares of Alphabet, with all of
the same rights." The company will continue to trade on the Nasdaq under
the labels GOOGL and GOOG.
The thinking behind the switch isn't incredibly clear from Page's
blog post. Here's the relevant chunk:
Alphabet is mostly a collection of companies. The largest of which, of
course, is Google. This newer Google is a bit slimmed down, with the companies
that are pretty far afield of our main Internet products contained in Alphabet
instead. What do we mean by far afield? Good examples are our health efforts:
Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused
on longevity). Fundamentally, we believe this allows us more management scale,
as we can run things independently that aren’t very related. Alphabet is about
businesses prospering through strong leaders and independence. In general, our
model is to have a strong CEO who runs each business, with Sergey and me in
service to them as needed. We will rigorously handle capital allocation and
work to make sure each business is executing well. We'll also make sure we have
a great CEO for each business, and we’ll determine their compensation. In
addition, with this new structure we 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.
He added, "Don’t worry, we’re still getting used to the name too!"
Businesses that will stay a part of Google:
·
Search
·
Advertising
·
Maps
·
Apps
·
YouTube
·
Android
Businesses spinning off from Google to become separate companies
under Alphabet:
·
X lab (“moonshot” research incubator that includes projects such as self-driving
cars and delivery drones).
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