Google rebrands as Alphabet. A news piece that has caused a stir in the tech world!
The search engine giant, Google, dropped the bombshell at 5pm EST on Monday, the 10th of August, by announcing a radical overhaul of its corporate structure and introducing a new parent entity called Alphabet on the official Google blog. The new public holding company will be led by Larry Page, Sergey Brin and Eric Schmidt, all former Google heads.
In answer to why create Alphabet, Larry Page explains,
“For Sergey and me this is a very exciting new chapter in the life of Google – the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products–the whole point is that Alphabet companies should have independence and develop their own brands.”
The new company’s name, is a stroke of genius. The most generic name in the world; the word Alphabet encompasses all words from A – Z, thus making it clear that the multi-dollar Web conglomerate aims to cover everything. This new Silicon Valley entity also has the most wicked and memorable URL ever, one that doesn’t end in .com or .biz, its abc.xyz instead.
Meanwhile, the Google we all know and love, will continue to exist as a subsidiary of Alphabet Inc, under the leadership of the rising star, Sundar Pichai, formerly the boss of Android and then Google’s product chief from October 2014. Divisions under the “Google wing” will continue to include search, ads, maps, apps, YouTube and Android — all of Google’s more profitable and known businesses. However, several smaller holdings like Nest, a maker of smart thermostats, and Calico, a company focused on longevity, will be managed under Alphabet.
According to Page’s post, Alphabet will eventually replace Google as the publicly traded company on the Nasdaq stock exchange, and all shares of Google will convert to shares of Alphabet.
Google has always been an innovative brand that eschews conventions. However, its latest, bold move has raised quite a few eyebrows in the tech world. How far do you think will this venture go?