After U.S. markets shut on Friday, Alphabet supplanted Google as the traded on an open market organization that will house Google’s inquiry and Web publicizing organizations, maps, YouTube and its “moonshot” ventures, for example, driverless autos.
In an announcement on their Investor Relations page, tech giant Google declared that it will officially become “Alphabet” – finalizing and cementing its long-awaited reorganization.
It may be recalled that last August, Google revealed its plans to restructure the business, as per CNN Money. In the same report, CNN Money notes that there will be no major operational changes noticeable in Google’s restructuring.
“At its most basic level, Google is just renaming itself ‘Alphabet’ and creating a subsidiary business called ‘Google.’ The new Google will continue as the consumer-facing brand and will run all the products you’ve heard of, including search, Android, YouTube, Maps and Google Apps,” the CNN report clarifies.
The said organizational “reformation” is akin to Warren Buffett’s Berkshire Hathaway (BRKA), according to CNN Money – where each of the “subordinate” business will have its own head or CEO, for that matter. These CEOs will all be reporting to former Google chief, and now Alphabet CEO, Larry Page – who notably admitted to being a fan of Buffet’s managerial style.
CNN Money furthers that in the new organizational chart, Google co-founder Sergey Brin will take over as Alphabet’s President along with Page who will serve as the parent company’s CEO, as previously stated.
Google will welcome new CEO Sundar Pichai who is reported to have a stellar professional career in the company. “He’s a well-liked executive who’s had a meteoric rise since he joined Google in 2004. He led the Google Toolbar team, then Chrome. He was then given control of Android and eventually every Google product not named YouTube,” the CNN Money report said.
CNN Money divulges that the company’s investors were the main reason the restructuring was established. There was a growing anxiety among shareholders regarding Google’s funding of “moonshot” investments which might not have an ROI. “Since 90% of Google’s sales came from advertising, Page was criticized for not devoting more of his time to search. Now, Google will be a separately run company without its CEO worrying about those ‘side projects,'” to quote the CNN Money report.
Starting Monday, Google will be trading as Alphabet but will, however, retain the same name – “GOOGL”
Here’s the full statement:
“Google Inc. announced today that, pursuant to its previously announced plans to create a new public holding company, Alphabet Inc. (“Alphabet”), by implementing a holding company reorganization (the “Alphabet Merger”), it expects that the Alphabet Merger will close after the close of business on October 2, 2015. Google anticipates that shares of Google Class C Capital Stock and shares of Google Class A Common Stock will begin trading as Alphabet Class C Capital Stock and Alphabet Class A Common Stock, respectively, on the NASDAQ Global Select Market on October 5, 2015. Shares of Alphabet Class C Capital Stock and shares of Alphabet Class A Common Stock will continue to be traded under the same ticker symbols under GOOG and GOOGL, respectively”.