A Parent Company named Alphabet Inc. was created by Google yesterday. But the well-known businesses of Google like apps, search, Android and YouTube will be retained by Google itself.
The new parent company Alphabet will run other new entities like the unit nest “smart home”, research division, investment division and drone arm. Larry Page, the founder of Google said that the creation of Alphabet Inc. would make the whole structure simpler and businesses will be continued in diverse groups. He also said in blogspot that now they could concentrate on the excellent opportunities those are inside the Google itself. According to Larry, Google has been operating very well now days but they were thinking to make the operation more accountable overall. Alphabet would have independence to create their new brands.
Larry Page will be the CEO of Alphabet and Sundar Pichai will be the Senior Vice President. The co-founder of Google, Sergey Brin will be the President of new parent company. Eric Schmidt, who is the present Chairman of Google, will become the executive chairman of Alphabet. Ruth Porat, who was the chief financial officer of Google, will remain same in Alphabet also. Colin Gillis, the Investment Analyst of BGC Partners’ stated that the creation of new parent company would provide more clarity to investors and it could show the spending nature of two products.
Gillis said to Blooberg that the ways of investing the money into different ventures would be disclosed for creation of this parent company Alphabet Inc. The other productive business lines would be added more and more if Alphabet wants to acquire new business lines. They might improve their mechanism also. Larry Page said that the name of the parent company Alphabet was selected because language is represented through the name. It also represents that return on investment is above benchmark and the same they are trying to do.