Google creates its own parent company and lands itself a new CEO!

Endaba Group

Google has grown so big it’s created its own parent company, named Alphabet. On Monday, CEO Larry Page and co-founder Sergey Brin said they created Alphabet, which is essentially a holding company built of smaller companies, including Google. Page will become the CEO of Alphabet whilst Brin will be President. Google’s second in command, Sundar Pichai will now be the CEO of Google.

The creation of Alphabet raises many questions such as will Alphabet share the same founding mission as Google and how will its senior ranks adapt? Google is not doing follow up interviews, so we are left to decipher these from their SEC filing and blog post.

Other management moves include Dave Drummond, Google’s Legal Chief, will cross over to Alphabet to take on the same role; Omid Kordestani, Google’s Business Chief will also leave Google to become an Alphabet advisor. Some executives, such as the new Chief Financial Officer Ruth Porta, will hold the same role at both companies. Eric Schmidt will be the Executive Chairman of Alphabet.

This further raises questions about Google’s tangential businesses. Does the likes of YouTube now really belong under Google, or should it too be separate? At the moment, the division of companies is surmised in their blog: “Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the “Google business”).  Businesses such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X, will be managed separately from the Google business.” However, there are businesses that are not covered in these two sentences. What happens with those?

This new structure has raised a lot of questions. How different will Google/Alphabet be, and what, if anything, will change?

Image source: website abc.xyz.