Google made a big announcement on Monday afternoon that shook the tech world: the internet and technology giant would no longer known as Google, but rather as conglomerate corporation named “Alphabet.”
, along with every other news agency has written extensive pieces about the news, but you don’t have time to read through all that, but guess who does? This dude. Me. Here are three things you need to know about all this Alphabet business:
1) What’s in a name?
In an extensive blog post written by the company’s founder, Larry Page, Alphabet Inc’s inception is a simple one.
“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!” Page wrote. “We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!”
Cute right? But will we start seeing “Alphabet phones” or “Alphabet self-driving cars?” Nope. Which brings us to our next point.
2) What does this mean for me?
As consumer Alphabet means relatively little. You won’t be seeing any products or services with the Alphabet branding.
“We are not intending for this to be a big consumer brand with related products,”Page wrote
“The whole point is that Alphabet companies should have independence and develop their own brands.”
So what parts of google are becoming their own company?
- Google (the search engine, Android OS, Maps, and Youtube)
- Google Ventures
- Google Capital
- Google X (self-driving cars, internet via balloons, anything weird)
If you’re an investor or work in finance Google's restructuring could have a much larger effect on you.
For instance the shuffle at google, with Page moving up as the CEO of Alphabet, and all of Google’s subsidiaries becoming companies in and of themselves has already had huge effect on the way it’s received in the market.
Following Google’s announcement the company's stock soared 6%.
AsThe Washington Post
reports, investors generally appreciate when companies like Google don’t throw money at project the post refers to as “long shots”
“Google wants to convince investors that it's not throwing their money away on long shots that are really no shots,” The Post explains. “By splitting itself in two, Google can show people how much its search business is making versus how much its other businesses are spending. That alone should give investors an idea what Google's value would be if it stuck to search, which should help keep its actual value closer to that. It's a way to push the stock price up without cutting all the side businesses down.”
3) Who’s in charge of Google now?
Not you, not me, and definetly not my mother.
Instea of those viable candidates i just listed, a long time Google employee named Sundar Pichai will take on the CEO position of a "slimmed down" Google. Pichai initially joined the company in 2004.
Pichai has been the head of Google’s product team since October of last year.
Matt Lee is a Web producer for Metro New York. He writes about almost everything and anything. Talk to him (or yell at him) on Twitter so he doesn’t feel lonely@mattlee2669.