The tech giant, Google has recently announced that it would rebrand the company as ‘Alphabet’ — and Google itself will be its largest subsidiary. Google’s co-founders, Larry Page and Sergey Brin has recently made the blog post, in which they have stated about the radical plan to restructure company’s structure and management, handing the control of its search engine business to Sundar Pichai – the man much in demand in Silicon Valley these days.
Alphabet will preside over many other companies, the largest of which will remain Google. According to the co-founders of Google, their company was not really a conventional one and neither would they love to become one and therefore this move. Google came into pressure as its success was used by the founders to make riskier bets on household devices, autonomous cars and several such things. The restructuring will help the investors with better insight about how the money is being utilized.
All shares of Google will get converted into corresponding shares of Alphabet and will continue to trade under the same stock ticker symbols of GOOGL and GOOG. The new structure of Google is said to be quite similar to that of Berkshire Hathaway of Warren Buffett that hold several holdings and also have stakes in many companies. However, industry experts are quite skeptical about the level of financial improvement this move will bring to Google.