The founders of Google Inc, announced Monday on a blog post that the popular internet search giant will become a subsidiary of a new holding company called Alphabet Inc.
In a bold new move is for increasing innovation, Google, according to its co-founders Larry Page and Sergey Brin, will become a “bit slimmed down”
As apart of Alphabet Inc, Google will remain as it is today, but will focus more on specific areas such as its search engine services,Google Chrome, Google Maps and YouTube.
Page will be the CEO of Alphabet, Brin will become President, Eric Schmidt will become the executive chairman and Sundar Pichai who is a long time Google executive will be the head of Google Inc.
Page and Brin are very focused at developing new technological ideas which are different from the general mainstream of things.
We are excited about…
- Getting more ambitious things done.
- Taking the long-term view.
- Empowering great entrepreneurs and companies to flourish.
- Investing at the scale of the opportunities and resources we see.
- Improving the transparency and oversight of what we’re doing.
- Making Google even better through greater focus.
- And hopefully…as a result of all this, improving the lives of as many people as we can.
Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.
The pair started their company in 1998 and has since seen massive growth with its products offerings and its brand which is known world-wide many times over. According to the two of them in their blog post, they also stated this about their new announcement.
Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related.
What this all means for Google Inc, is that all of their shares will be automatically converted into the same number of shares for Alphabet, and with all the same rights, becoming a wholly owned subsidiary of Alphabet.
After the announcement, shares of google gained as much as 7 percent to $708 in after hours trading. After today’s news, expect to see changes take in effect later on this year.