Google Inc has ended a four-year journey today and you might never hear of Google has it has been known for the last 17 years again. Today, Google officially becomes Alphabet today in line with its report in early August that it was starting a holding parent firm that will hold all of Google’s current business segments as different firm. The firm released the change today in a statement posted on its investor page earlier today.
The official statement from the firm reads “Google Inc. announced today that, pursuant to its previously announced plans to create a new public holding company, Alphabet Inc. (“Alphabet”), by implementing a holding company reorganization (the “Alphabet Merger”), it expects that the Alphabet Merger will close after the close of business on October 2, 2015.”
Google’s four-year journey ends today
As Google formally becomes Alphabet today, you might want to take solace in the fact that the move was a well-thought out plan for the firm. Business Insider reports that sources deep within Google have revealed that the firm has been planning to make the move into a parent-holding firm for the last four years. The source was quoted saying, “This has been discussed for the last four years… The details are a little bit different, but the idea is the same.”
The four-year journey by Google was necessary for the firm to stay nimble in a fast-changing world. One of the major problems facing the big-name tech firms that such as Yahoo! Inc. that are now struggling for relevance is that they grew too big, they stopped growing, and they started dying. Page understands that keeping Google unified with many different segments places the firm at a disadvantage because management won’t be focused.
Alphabet is focused
The new parent structure allows Page to focus on the big picture of where Google (read Alphabet) is headed in the grand scheme of things. The CEOs of the different firms under Google are then able to focus on growing their segments “independently”. The result is a parent firm that is able to access its various interests with an objective views while thinking up new ways to allocate resources and unlock growth.
A former Google Plus designer Chris Messina provides much insight into the rationale behind the switch to Alphabet. He says, “In some ways… the best way to prevent itself from being blown up from the outside is to blow it up from the inside.”
The board at Google confirms the insight by saying, “Google is not a conventional company. We do not intend to become one”. The firm makes “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.”