Google Become Alphabet in a Huge Restructure
Recently, Google announced that they would no longer be functioning under the well-known brand, but restructuring as ‘Alphabet’. This will be the overriding holding company, with Google becoming a subsidiary of this.
The whole shake-up has emerged from the top, with Google’s co-founders, Larry Page & Sergey Brin, stating that the entire company will be changing, with big alterations to the structure and management; the biggest change being that Sundar Puchai will now oversee the search engine, Google.
This restructure comes as part of an initiative to give investors chance to see where their money is going and exactly what it’s being spent on. With the huge success of the search engine, it’s clear that Google, or ‘Alphabet’, can play its hand elsewhere.
The new company, Alphabet, will preside over a collection of companies, the largest of which will be Google.
All shares of Google will automatically convert into corresponding shares of Alphabet, which will continue to trade under the stock ticker symbols GOOG and GOOGL. Shares in Google soared 5% in after hours trading. The new structure is said to be similar to Warren Buffett’s Berkshire Hathaway, which wholly owns a number of diverse holdings and has stakes in several others.
It seems that Google will continue to push the main Internet products that the business has to offer, but Alphabet will expand and increase the growing need for other products and business sectors. Statements suggest that the separation of the companies will enable them to independently market items that aren’t entirely related.
It remains to be seen whether Google will simply continue to tell shareholders to be content with their profits when it comes to some major business segments.