Summary: Google is set to keep growing, creating a new company that will help them do that by organizing and clearly showing their ventures.
Google Inc. created a new company called Alphabet Inc. The holding company will allow Google to see how their investments into things such as driverless cars, health-related technologies, and high-speed Internet will pay out.
The recent endeavors that Google has been focused on like research lab Google X and Calico, a look into how to extend human life, have been ambitious but a step in the right direction for the Web operator. This new company has already continued to boost their shares with a 4.1 percent increase.
An analyst at BGC Financial, Colin Gillis said “There’s been a lot of speculation about how much money they put into these other ventures. That will come to an end. This also gives them the structure to add in another business line if they were to acquire something.”
Larry Page will continue as chief executive officer at Alphabet with co-founder Sergey Brin as president. Omid Korestani will become an adviser for Alphabet and Google. Ruth Porat will be the chief financial officer while Sundar Pichai will become the CEO of Google Inc in place of Page. Google Inc. generates the majority of the company’s $60 billion annual revenue.
The name they chose for the new company may seem strange but so was Google before it became a household term. Page described the decision as “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!”
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