Digital Insights

The ABC’s Behind Google’s New Parent Company Alphabet


Published: August 13, 2015

Google Grows Up & Out!

Never wanting to be out-shined, Google founders Larry Page and Sergey Brin, have always had over-the-top ideas. Whether it was beating out ideas and procedures used in big companies like Microsoft, this pair would not settle for anything less than the best and the most of everything. With that in mind, when it came time to expand, Google will convert into a subsidiary of Alphabet; the new parent company of Google. Alphabet ( will be the holding company for a family of ventures conceived and initiated by both Page and Brin. However, Page will be stepping down from his CEO position, leaving the reigns to a new name, Sundar Pichai.

Google = Alphabet / Why the Change?

From their “humble” beginning, Google has expanded from a simple search engine, acquiring countless popular internet companies, comprising Android, Youtube, and of course, Gmail. Most recently, Google began dabbling in even more innovative ventures; broadening their borders and implementing new projects to include such technologies that involve futuristic cars, anti-aging inventions, and leading-edge internet access technology (just to name a few).

Innovation & Greater Ambitions Lead to Branching Out

With the broad array of ventures in their sight, Google became too diverse. The need for a change was demanded to efficiently manage all of the projects popping up in so many diverse categories. There was a need for specialized management; requiring unique talents and experience for management positions in each arena. Creating a holding company to house all of these projects–Alphabet oversees everything. From self-driving cars to balloon-powered internet, this new holding company supplies independence for each contrasting project.

When it comes to all of the Google shareholders, each will receive one share of the parent company Alphabet, to each share they own in Google. {will get one Alphabet share for every Google share they previously owned.|} Alphabet execs will be the same structure as was with Google:

CEO Larry Page, President Sergey Brin, Executive Chairman Eric Schmidt, CFO Ruth Porat, David Drummond, the chief counsel;

Entities Included in the Google to Alphabet Change:

When it comes to all shareholders, Google’s name change will be the only change initially. Google will simply become Alphabet, and all existing shareholders will then only hold shares in Alphabet companies as opposed to Google.

Recently, Page, Google’s CEO, shared that many ventures previously managed by Google will become separate and independent–falling under the umbrella of Alphabet, such as:

  • Life science research
  • Calico longevity project
  • X Lab (drones)
  • All Investments, Capital and Ventures

Will Google Users Be Affected by the Change?

It looks as though nearly all of Google users , whether search , Youtube , or any in-between will probably experience little to no change at all. Executives have stated that they will continue to operate as before for the most part which is a good thing for those who rely on simply Google products and applications. .

If the lift-off of Alphabet impacts subscribers, it will likely be due to the fact that a few of these more aggressive ventures offer a payoff. For instance, the Calico undertaking is designed to lengthen lifespans—most likely not to occur within the next year or possibly even the coming decade. Without a doubt, nearly all of Google’s opportunistic ventures are very unlikely to recompense in any way. However, some of them do succeed, it may have substantial benefits.

Larry Page is CEO of Alphabet. Sergey Brin, Google’s other co-founder, is the president of Alphabet.

A press release given by Page shows a devised plan that comprises Alphabet’s priorities:

Venturing out into more ambitious projects Paying close attention to long-term goals and the future of Alphabet Investing in new ideas and the entrepreneurs and companies that come up with them Becoming even more transparent and decreasing instances of oversight Google becomes more focused as it dedicated time to only certain apps and products It seems as though the end goal is to have dedicated members who focus on each individual project. The main objective is to grow without decreasing the effectiveness of their already very useful tools while branching out to bigger and better opportunities to improve our everyday lives.