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Google becomes Alphabet, G is for Google

11 Aug 2015 | Rasmus Larsen |

It came out of the blue. Google has announced a major reorganization with a new holding company called Alphabet that will run several subsidiaries, including Google and the X lab. Sundar Pichai is the new CEO of Google.

G is for Google

The company will have to jump through several loops to transform Google into Alphabet and then place Google as a subsidiary of the Alphabet but the key takeaway is that Alphabet is the new parent company. If you buy “GOOG” on the stock exchange you will invest in Alphabet.

The reorganization also means that Sundar Pichai becomes CEO of Google. Pichai has been in charge of Android and Chrome, and with him at the helm there is a good chance that Android will continue in the same direction as in recent years. Larry Page will become CEO of the Alphabet.

However, most of the smaller component of Google will be separated into new companies. There is one G but two Cs.

Alphabet consists of:
  • Calico (run by Art Levinson) - biotech company with the aim to extend life
  • Capital (run by David Lawee) - investment fund
  • Google (run by Sundar Pichai) – search, advertising, maps, apps, Android & YouTube
  • Fiber - fiber internet company
  • Life Sciences - contact lenses with glucose measurement
  • Nest (run by Tony Fadell) - home automation
  • Sidewalk (run by Dan Doctoroff) - Wifi cities
  • Ventures (run by Bill Maris) - venture capital
  • X (run by Sergey Brin) - research laboratory, self-driving cars, more


    Google still runs Android & YouTube

    For most of us Google will look more or less the same. The company will still be responsible for everything related to search engines, advertising, Android on mobile, TV and watches as well as YouTube, which will remain a part of the new leaner Google subsidiary.

    But Why? Larry Page explains on the new website that it is an effort to make the separate divisions “leaner” and “more accountable”.

    - ”We liked the name Alphabet because it means a collection of letters that represent language, one of humanity's most important innovations, and is the core of how we index with Google search! We also like that it means alpha bet (Alpha is investment return above benchmark), which we strive for!” said Larry Page.

    When talking about projects such as self-driving vehicles, glucose-tracking contact lenses and other wild projects, it is worth nothing that these are no longer placed under Google. No worries, even Larry Page will need some time to get used to the name change, he said.

    “Google is not a conventional company. We do not intend to become one.”

    - Source: Alphabet

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