Google has a new parent company named: Alphabet

[snowhiker]

Quote from their blog, "Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet (http://abc.xyz). I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.

What is Alphabet? 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."


Google press release here.

Wall Street Journal story here.

 

[ddrueding]

While this is nice and all, it's not like they weren't doing all kinds of crazy things before they restructured. I suspect that this is just making room for other products to become wildly successful, or to protect one brand from another's failings. I don't want my Google car to crash as much as my Google Android phone.

 

[LunarMist]

I'msurethere'ssomelegalreason todoso.

 

[Mercutio]

My guess is that this is a way to emphasize or de-emphasize the importance of some executives or projects that were formerly part of Google. This is probably just restructuring an org chart.

 

[Howell]

My guess is that this is a way to emphasize or de-emphasize the importance of some executives or projects that were formerly part of Google. This is probably just restructuring an org chart.

The press release seems to indicate so. My bet it's that the founders don't like running the established company as much as the cutting edge companies. They like the guy they hired but think he has enough on his plate.

 

[Buck]

To me it seems that the board members want this to help improve long-term stock prices, quantities, options and possibly portfolio offerings. A CEO is just a front-man who needs to get done what the board wants to accomplish.