IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Google transforms into Alphabet group of companies

The holding company will replace Google as the publicly-traded company

The Googleplex Google HQ by Trey Ratcliff on Flickr https://www.flickr.com/photos/stuckincustoms/4323977677

Google has announced it is transforming into Alphabet, a holding company to house the collection of the companies it has acquired and is running, although Google will remain to be the biggest in the group.

The new company will comprise a whole spectrum of businesses - some of which are related to what Google already does - and others that are separate from the day-to-day themes of technology.

However, it won't be a consumer brand and won't launch any products or services - the individual companies within the holding group will develop them.

"Alphabet is about businesses prospering through strong leaders and independence," Larry Page, Google's CEO said. "In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed."

He explained the two founders will handle capital allocation and work to make sure each business is performing, and their responsibilities will also include deciding how much each CEO earns.

Google will be headed up by Sundar Pinchai, who was rumoured to be taking over the top role at the company as early as last year, and will continue to focus on innovation and "stretching boundaries."

"In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole," Page continued.

Although Alphabet will become Google's publicly-traded company and Google will become a wholly-owned subsidiary of Alphabet, its two classes of shares will continue to trade on the Nasdaq stock exchange as GOOGL and GOOG.

"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!" Page finished.

Image credit: Trey Ratcliff, Flickr

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Most Popular

FCC commissioner urges Apple and Google to remove TikTok from app stores
data protection

FCC commissioner urges Apple and Google to remove TikTok from app stores

29 Jun 2022
Former Uber security chief to face fraud charges over hack coverup
data breaches

Former Uber security chief to face fraud charges over hack coverup

29 Jun 2022
Internet providers look to ease cost of living crisis with cheaper broadband
broadband

Internet providers look to ease cost of living crisis with cheaper broadband

29 Jun 2022