Google Inc. is now the subsidiary of a new company called Alphabet

Google, as in the Google Inc. that owns the Google search engine, YouTube, Android, Gmail, Google this, Google that, and the 50 or so companies related to all things from life extension to AI, is now rebranding itself as Alphabet to help sort out this trainwreck of branding.

Under this new organizational structure, the “Google” brand as we know it today, will strictly refer to interests related to search, ads, maps, apps, YouTube, Android, and the related technical infrastructure, states the recent SEC filing.

Speaking on behalf of him and Brin, Page explains that Alphabet will not replace Google as a household name, but that Alphabet will act as the new umbrella company that houses acquisitions and spinoffs alike, enabling brands to flourish without reliance on the “Google” name for instant brand recognition or affiliation. As such, spinoffs such as Calico, the life span longevity Company, Fiber, Google X, will now function as their own separate entity, and if they perform poorly, their impact will reflect less negatively on the parent company.

So, what does this all mean? The restructuring aims to increase the opportunities available by electing a CEO for each subsidiary in order to treat them as separate entities, but advisement and resource allocation remains in the hands of Brin and Page, who serve as the President and the CEO of Alphabet, Inc., respectively. Moreover, Sundar Pichai, the former head of Chrome and Android, will now be promoted to the CEO of Google.

Each share of each class of Google stock issued prior to the announcement will automatically be converted into Alphabet stock, with the same rights allotted to owners of previous Google shares.

Amidst the impending confusion to follow, the one thing that is certain is the origin of the name “Alphabet.” Page explains: “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!”

In theory, the restructuring should have positive long-term ramifications as the Google Inc., of the previous incarnation was a conglomerate of too many unfurnished ideas with excellent technical value – Google Glass, Google Wallet, Wave – but poor business execution. The new structure allows individual experts to manage their own affairs.

Source: MarketWatch + Gizmodo via abc.xyz