11 Aug Google to Reorganize as Alphabet to Keep Its Lead as an Innovator
Google was founded as a company that did Internet search. Over time, it has broadened into areas as varied as drones, pharmaceuticals and venture capital, none of which make much money, and some of which have spooked investors.
Now Google is listening to Wall Street, while also trying to keep its innovation going. The Silicon Valley behemoth is reorganizing under a new name — Alphabet — and separating its moneymaking businesses from the moonshot ones.
“For Sergey and me this is a very exciting new chapter in the life of Google — the birth of Alphabet,” Larry Page, the chief executive of Google, wrote in a blog post on Monday. “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.”
Under the new structure, Mr. Page is to run Alphabet along with Sergey Brin, who co-founded the web search business with him in 1998. Alphabet would be the parent entity, housing several companies, with the biggest among them Google. In addition, the portfolio would include Nest, the smart-thermostat maker, and Calico, a company focused on longevity, among other things. Sundar Pichai, who had been senior vice president in charge of products, will be chief executive of Google, which will encompass Internet products like search, maps, YouTube and applications like Gmail.