Google founders name Sundar Pichai as Google CEO, create new parent company called Alphabet

by: Andrew GrushAugust 10, 2015
4.3K
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Out of the blue, Larry Page took to Google’s official blog this afternoon to announce the creation of a new company, Alphabet. So what is Alphabet? Just another of the many companies under Google? No, the exact opposite. Alphabet is a new umbrella company that is a collection of other companies, including Google.

Larry Page will act as CEO of Google’s new parent company, with Sergey Brin as President. As for Google? It is getting slimmed down a bit, with Life Sciences (a company that focuses on glucose-sensing contact lens), Calico (focused on longevity) and some of the other “way out in left field” projects moving under Alphabet’s wings. Yes, that means X Labs is also now under Alphabet and not directly associated with Google.

Google is not a conventional company. We do not intend to become one. - Larry Page

Google will remain focused on Internet products, Android, and other Google-y things with Sundar Pichai now moving into the position of CEO of Google itself. For those wondering, YouTube will remain a semi-independent part of Google as well, with Susan Wojcicki in charge as its CEO.

So why rebrand now? Basically, Google has grown into a giant monster. The idea is that restructuring will allow for better organization, with each company under Alphabet having its own “strong CEO who runs each business” with Sergey and Page “in service to them as needed”. In many ways, the new company will operate similar to the old one, but with more defined lines, better accountability, and more comprehensive structure. Alphabet Inc. will also replace Google Inc. as the publicly traded entity, and all shares of Google will convert into the same number of shares of Alphabet.

Obviously this a huge shake-up and totally unexpected. We’ll be sure to bring you more details as this story develops, as well as some reactions to how the creation of Alphabet changes the company’s structure and identity going forward. For those that want to do a bit more digging, Alphabet has already launched an official website, though there’s not much to see just yet.

What do you think of this massive news? Let us know in the comments below.

  • Alex Tacescu

    wha….? Why???? and Lolz. i saw googleplex yesterday, so I guess that was the last time ever it would be “google”

  • Ethan Torres

    Oh my gosh! I can’t believe this, why would you throw yourself into shackles!!?? ?

    • nilbud

      Heroin is not your friend.

  • Chris Gabriel

    aww It seems like Larry and Sergey are having a lot of fun just like 2 kids dreaming about great things lol and i like the idea, i’m looking forward to see what Alphabet will bring to the world…

  • Joachim Nilsson

    Relax people, it’s not like it’s going to change a lot going forward.

    • Andrew Grush

      It is intriguing news, but yah, it really has to do more with organization, taxation, and other things. Structurally, Sundar was already the man in charge of the bits of Google we really care about. This will likely change things in some ways, but it won’t dramatically change everything overnight by any means.

    • D C

      I would have to say that I think this is even better since now it is Alphabet that needs to answer to shareholders and not Google and et al. It’s like all the sub companies can now be “private” and choose to do what they want and take chances that would normally be hard to do if they had to answer to shareholders and meet quarterly profits. As long as Alphabet is profitable then the sub companies can do whatever they want hopefully leading to more innovative products down the line.

      • Kamalnath

        and it’s easy to oversee all the work being done….

  • hzd

    Means nothing to the consumer – They Are Still going to Be Google, that will never go away.

    Its an over arching umbrella for all the companies owned by the group formally known as Google > and everything below it. now its just Alphabet -> Google & Everything else.

    Sounds like a good idea, they might buck their ideas up with chrome OS !

  • Rekcus

    What a sad comment. That’s plain uneducated racism. Maybe you should go back to school. That way you could compete with smarter and better educated foreigners…

    • Mayur Gupta

      true…. I wonder how these people exist….

  • Marc Perrusquia

    I see Fox News has done a good job once again of scaring an idiot into blind hatred.

    • nilbud

      It smells of neckbeard.

      • Marc Perrusquia

        Indeed

        • Mayur Gupta

          haha … This admin is out of his mind…..

  • Bats

    ALL HAIL SUNDAR.!

    • Marc Perrusquia

      Ah The New Batman Adventures aka season 4 of tas, not the best season but still the greatest show of all time, at least animated.

    • nilbud

      His full name is SUNDARER OF WORLDS, he misspelled it on purpose because he enjoys torturing people who try to correct him. It’s a tough management style, tough but fair.

  • Abbas Mustafa Bhaiji

    I think now they can finally use the .google now

  • Ruby

    Sounds more like a creative accounting decision designed to maximize tax avoidance. Double Irish Dutch Sandwich anybody? It’s not All about the technology folks.

    • Kamalnath

      may be. if couple of companies do not create profit, the tax of profitable companies will reduce….

  • Thomas Carty

    Moving the deckchapirs on the titanic…

  • AbbyZFresh

    With this, I say it’s now possible for Android and YouTube to actually spinoff into their own companies instead of just under Google.

  • vampyren

    Google sucks when it comes to customer service. Hell their own post never sees any response ever. Anything is better then what they have today. They are like a big monster today. They really need to improve their customer side of things. Maybe with this change they can have a different focus and also care a little about their customers and the way they communicate with us.

  • Ignacio Guerendiain

    Lorem Ipsum asit temet.