Alphabet Inc – The Mother of Google


In case you missed it, Google is now Alphabet Inc. Alphabet Inc. is the new parent company of Google. Basically it is a collection of companies but largely consisting of Google. It consists of various other ventures like YouTube, Chrome, and Android, Maps and Google Apps. It allows more management scale, focusing on the businesses to run independently and give freedom to grow. It has no consumer products of its own so you won’t hear much from them. Shareholders will get one Alphabet share for every Google share they hold.

Alphabet Inc.

Who are the new executives in charge of Alphabet Inc.?

They will be the same executives in charge of Google – CEO Larry Page, Executive Chairman Eric Schmidt, CFO Ruth Porat, and Chief Counsel David Drummond, President Sergey Brin.

Each business under Alphabet Inc. will have its own CEO and they will all report to Alphabet’s CEO.

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What does the Alphabet Inc. includes?

It includes a smaller company called Google whose CEO is Sundar Pichai. It will include the company’s core businesses – search, ads, maps, YouTube, Android, and related technical infrastructure.

Apart from Google there are other businesses which are also involved. These businesses include –

  1. Calico – It is an independent research and development Biotech Company which was established in 2013 by Google.
  2. Nest – It is a home automation programmable device, Wi-Fi enabled thermostats, self-learning, sensor driven, smoke detectors and other security systems.
  3. Fiber – It provides an internet connection speed of up to 1GB/second for both download and upload.
  4. It also includes investing arms such as Google Ventures – funding for bold new companies, Google Capital – invests in long-term tech trends, and incubator project like Google X – working on big breakthroughs.

This will help the investors to look how each subsidiary is working and provides transparency to them. It will give an overview as to how Google works along with its other businesses. It will also provide more clarity about Google’s core business.

Alphabet Inc.’s shares are up by 6% since its announcement. It turns out that the investors are pleased with this innovation.

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What do the executives of Alphabet Inc. have to say about this?

They are excited about –

  • Getting more ambitious things started and done.
  • Looking at the long-term.
  • Giving a head start to great companies and entrepreneurs.
  • Improving the transparency and oversight of what the parent company is doing.
  • Making Google a priority by focusing more on it.
  • And lastly, trying to improve the lives of people in a greater way!

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