Google’s recent announcement of Sundar Pichai being named the new CEO of the company took consumers by surprise. Following the announcement came the news that figureheads, and former CEO and President, Larry Page and Sergey Brin are moving to a new umbrella company of Google’s called Alphabet.
As consumers reliance on google as a search engine, as well as google as a technology provider have grown since it’s invention 11 years ago, the news of its plans to ‘slim down’, according to former CEO Larry Page, have come as an intriguing shock. Throwing away any and all conventionality, Alphabet is set to be the new face of the well known Google, and for many curious consumers, the thought is overwhelming.
The announcement launched in a strategically timed blog post, which went live after the stock markets closed. Unlike any other major company wide restructuring, the decision is appearing to be more than just simple rebranding. Alphabet is set to be the figurehead of all of Google’s investments such as Google Investments, Google X, Google Capital, and a variety of other projects that are increasingly the focus on its billionaire founders.
As Page approaches his new position of CEO of Alphabet and Sergey Brin as President, the decision to rename Pichai as the new CEO of google is in efforts to refocus the company.
Admittedly still getting used to the name and the change to follow, Page introduced Alphabet as ‘a collection of companies’ now all under one roof. This move, unprecedented as it is, is a brilliant management tactic to allow more scale to the companies already independent hold.
Google shares will be converted into Alphabet shares and will translate on the Nasdaq as GOOGL and GOOG, as Google set to become a subsidiary of the new and improved Alphabet. Investors reacted positively to the news, with the company’s stock price up over five per cent after the announcement.