In a letter to investors today, Page has revealed himself as the CEO of a new company called Alphabet. Alphabet is essentially the new Google, in that all of the different projects currently operating under the Google name — projects that have long grown further and further away from Google — are now Alphabet products. Including Google itself. Sundar Pichai will take over as CEO of Google, which as a whole will report to Alphabet, led by Larry Page and Sergey Brin. All other Alphabet companies, like X Labs and Calico, will get their own CEO who will also report to Alphabet.
On the financial side, “Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet.”
As a result of Alphabet’s creation, and its ownership of Google, Google as an Alphabet owned product itself will be slimmed down. This will theoretically lead to a more agile and focused Google, which will in turn theoretically make Google better in the long run.
Page and Alphabet have laid out the main goals for the new company as:
- Getting more ambitious things done.
- Taking the long-term view.
- Empowering great entrepreneurs and companies to flourish.
- Investing at the scale of the opportunities and resources we see.
- Improving the transparency and oversight of what we’re doing.
- Making Google even better through greater focus.
- And hopefully… as a result of all this, improving the lives of as many people as we can.
This is a lot to digest late on a Monday afternoon, and there’s a lot we don’t know right now (is Android now an Alphabet company?) so rest assured there will be plenty more on Alphabet to come.