Google has just announced that they are restructuring the company into a new ‘collection of companies.’ The collection of companies will all fall under the ‘parent’ company that is going to be called ‘Alphabet.’ They have already secured the domain ABC.XYZ to function as their home page. This was all announced in a post by Google co-founder Larry Page.
Page will be the CEO of the newly formed company. Sergey Brin, who co-founded Google, will be the President. Sundar Pichai, who was Google’s Vice President in charge of Products will move into the CEO position of Google. The publically-traded company Google will be replaced by Alphabet, Inc with all shares transferring automatically. The company will remain on the NASDAQ, trading as ‘GOOG.’
The companies operating under Alphabet, Inc will be as follows:
- Google – Google will include their Internet products including things like YouTube, Search, Ads and Android.
- Life Sciences – Things like Google Contact Lenses and other similar products.
- Google X Lab – Products such as Google Glass, drone delivery and driverless cars.
- Google Ventures & Google Capital – These are venture capital companies.
- Calico – A company focused on increasing longevity
Page said in the announcement, “We are not intending for this to be a big consumer brand with related products – the whole point is that Alphabet companies should have independence and develop their own brands.”
The move will allow each individual company to take additional risks, which could potentially improve the long term payout quite significantly, or at least that is the hope of many.
It is far to early to tell exactly how this will impact marketers directly, but it is definitely something that we’ll need to keep a close eye on. This could have a significant impact on things like Ads and SEO in the future.
