Google started as a search engine in the late 1990s, and over time it has evolved into a multi-international technology company that specializes in Internet-related services and products. Some of Google’s services include search, online advertising technologies, software, cloud computing, social networking, mobile operating systems, and so much more! Because of the large growth and diversity of Google’s products, as well as the growth and change that is constant within the industry, Google founders Larry Page and Sergey Brin have decided to make the company cleaner and more accountable by creating a new company called Alphabet.
Instead of Google being the umbrella for hundreds of different products and services, Google’s subsidiary companies, including Google itself, will now become their own companies, with their own CEOs, all housed under the holding company—Alphabet. This restructure will allow each entity to prosper through strong leadership and independence.
Investors need not worry. “Alphabet Inc. will replace Google Inc. as the publicly-traded entity,” says Alphabet CEO Larry Page, “and all shares of Google will automatically convert into the same number of shares of Alphabet, with the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.”
Alphabet is not only beneficial for the companies involved, but it also allows the holding company to venture into areas that might be unlikely for Google, and allows Page and Brin to stay in control of the bigger picture of the company they founded almost 17 years ago. This new found freedom could be world-changing.