Monday, August 10, the Mountain View company announced a major change – and surprise – of its corporate structure. The search engine will become a subsidiary of a new entity, called Alphabet. The latter will be led by Larry Page, co-founder and current CEO of Google. Sergey Brin, the second founder, will serve as president. Eric Schmidt will be executive chairman, a position he already held at Google. The company is publicly traded, instead of the previous one.
Sundar Pichai, New Patron Of Google
“Alphabet is a collection of companies”, Page says in a message posted on the official Google blog. “Google is the largest. But this new Google will be alleviated. Remote Internet companies of our main products are now grouped in Alphabet. “Concretely, this means a clear separation between the business heart of Google and all supplemental projects. This is Google X (futuristic projects), Calico (health), Sidewalk Labs (city logistics), Nest (connected objects) Fiber (fiber) and Google and Google Ventures Capital (investment).
The new Google retain search engine, advertising activities, the YouTube video platform, the mobile operating system Android, the Maps mapping, Gmail and other Internet services and mobile applications. The subsidiary will also have a new CEO: Sundar Pichai, the rising star of the company. Head of Android and the Chrome Web browser, he was appointed last year vice president for products. For many observers, it had thus become the number two of the company.
Berkshire Hathaway As Model
“I am very lucky to have such a talented person than him to lead the new Google”, says Mr. Page in his message. “This will allow me to free up time,” he continues. “He was already somewhat involved in the management of traditional activities of Google,” recalls Brian Wieser, Pivotal Research analyst. But Larry Page still want more concentrate on the vision and projects in the very long term business. “Technology should deal with difficult jobs to allow people to do things that make them truly happy,” he summed up in 2013.
By creating Alphabet, it completes the transformation of Google beyond search online. It also reproduces the model of Berkshire Hathaway, the company led by US billionaire Warren Buffett that he considers as an example. The group of Mountain View “is no longer just a business but a conglomerate,” said Dawson in January, the firm Jackdaw Research. This should allow the respective companies to be independent of all others. Each entity is autonomous and under the responsibility of a Director General with enlarged powers.
Objective: to better innovate.