Google announces name change10 August, 2015
|By Allison Orr|
Google has announced a restructuring of the company and a name change.
Larry Page wrote about the change in a blogpost. “As Sergey and I wrote in the original founders letter 11 years ago, “Google is not a conventional company. We do not intend to become one.”
He points out that Google is operating well, but “we think we can make it cleaner and more accountable. So we are creating a new company called Alphabet.
The company’s front face will still operate as Google, in particular its search engine name will remain the same. But it will set up a holding company named Alphabet, which will include Google as well as the company’s other operations. So Alphabet is a collection of companies, each with their own CEO, under the general direction of the two original founders. Through this structure, each segment will report their financials separately.
Alphabet Inc will replace Google Inc as the publicly-traded entity and all shares of Google will convert into the same number of shares of Alphabet. Google will be a wholly-owned subsidiary of Alphabet.
Wired describes this change as a way for Google to show investors that the company’s bread-and-butter business can stay profitable, while they can chase “moonshots” which may fail to turn a profit or several years.
Google will still remain a strongly resonant brand, one of the most well-known brands in the world. It is not expected that Alphabet will become a consumer brand. For instance, while they will no longer come under the Google moniker, people will probably still identify theie driverless cars with Google.