“Google is not a conventional company. We do not intend to become one.” ~Larry Page, in Founders’ letter (11 years back)
So now, Google Inc. is officially Alphabet Inc.
Last month we had reported a few that Google had got new logo and also the announcement that Google will become a Product within the Alphabet (a holding company). It is official now.
Larry Page made this announcement on their new website about this change. According to the new structure, Alphabet Inc. will replace Google Inc. officially, as a publicly traded firm. All the shares of Google Inc. will not become Alphabet Inc.’s shares. But they will still be traded under the old scrip codes GOOG and GOOGL (codes that are used by stock exchanges to identify each stock).
The New Structure
In general, our model is to have a strong CEO who runs each business. ~Larry Page
Post this new structure, Alphabet will become the holding company of all their products and Google (search engine) will be one of them (and the biggest of them), but with lesser responsibilities on it’s shoulders. As Larry said, a few initiatives taken, which may not be closely related to Google’s business path, will be directly held by Alphabet. Google will be under the leadership of Sundar Pichai.
It makes sense to let Google focus on what it does best. And, all the new bets should be closely followed by a different team. This step not just frees Google’s mind-share but also lets them focus on taking Google as a product further.
More CEOs and more entrepreneurship
Alphabet is about businesses prospering through strong leaders and independence ~Larry Page
With ever increasing size of this behemoth, breaking down the products into independent businesses not just let them grow on their own, but also ensures growth of leaders from within. With the ‘Entrepreneurship’ buzzword making rounds everywhere, Alphabet is now a bit more pro-Entrepreneurship (not that it was any less earlier). It will also give other products a bit more leg space to really expand and grow in their own destiny paths.
What is your view on this? Tell us, we will be happy to hear about it.