In a completely unexpected announcement, Larry Page has just announced the creation of a new company called Alphabet that will be taking Google along with all of its services under its wing. Alphabet is described as “mostly a collection of companies”, the biggest of which is obviously Google. Larry Page will act as the CEO, Sergey Brin will be the president and Eric Schmidt will be the chairman.
The main purpose of Alphabet is to allow Google and its founders to expand their efforts without being tied down by the company’s name. For example, when Google acquired Nest, most people’s first reaction revolved around the fact that Google would now have access to personal home data. With Alphabet, Google’s founders can consolidate all of their extravagant projects like Calico and anything that comes out of Google X.
Even more important is the fact that each Alphabet division will have its own CEO. Sundar Pichai, the man that already holds most of Google’s services under his wing, will now also be the CEO of Google. The rising star will now control the majority of Google products except for the ones that have their own identity such as YouTube where Susan Wojcicki is the current CEO. Of course, Google’s founders will continue to offer guidance for all products but they will not be as involved in the process as before.
What this means for everyone else is that Alphabet will take on a lot more ambitious projects as Larry Page and Sergey Brin will be able to focus almost exclusively on those. Furthermore, any product that the company acquires will now be able to operate independently with the ability to create and promote their own brands. And anything that can be used to developer Calico for the better is a good move in my book.