This is the biggest change in the history of the Mountain View company. The Google company as we know it today will no longer exist as a result of a major reorganization. " Our society works well today but we think we can make it clearer and more responsible "Larry Page said Monday.
The co-founder and current CEO of Google has thus announced the creation of a new entity called Alphabet which he will take over. For Alphabet, we will find the usual trio with Sergey Brin (the other co-founder of Google) as president and Eric Schmidt as executive president.
Alphabet is a holding company presented as a collection of companies and of which Google will be the largest of all. But the Google subsidiary – with Sundar Pichai (current vice president of Google products) at its head – will be in a lighter form.
The new Google will be refocused on its historical activity of online research and online advertising, as well as cartography, applications, YouTube and the Android mobile operating system. No upheaval therefore for the common of Internet users.
The other activites, which have been added to Google over time, will managed separately from Google and placed directly under the leadership of Alphabet. These include Calico (biotechnology company), Nest (home automation) and Fiber (fiber optic), as well as investment groups Google Ventures and Google Capital, and the Google X project incubator (Internet of Things, car autonomous, robotics, Loon project, delivery drones, artificial neural network …).
This major reorganization should also give better visibility to investors who have repeatedly expressed concerns about futuristic projects carried out under the Google label. So it's no surprise that Alphabet will take the place of Google in Wall Street. On the Nasdaq market, we will nonetheless continue to find GOOGL and GOOG (from the lightweight Google).
At the address https://abc.xyz, an Alphabet site is already online. Via the Whois tool, you can see that the domain name was registered in March 2014. Despite the big surprise at the start of the week, the decision to create Alphabet was obviously not taken on a whim .
As for the why of the name Alphabet, Larry Page explains that with his friend Sergey Brin, they like this name because it means " a collection of letters that represent a language, one of the most important innovations of humanity, and that is at the heart of the way we index search with Google. "
And as Wall Street is never far from concerns, Larry Page also adds affectionate the meaning of alpha-bet with Alpha which is the return on investment.