Google has been very competitive with all of its services until it announced lately that they are going to be a subsidiary company of a holding company named, Alphabet. Google's structural and managerial changes will also include a transfer of all shareholders and a new URL.
Alphabet Corporation will be in charge of various subsidiary companies including Google. Junior College mentioned that Larry Page will be the chief executive of the holding company, and Sergey Brin will be the president. Sundar Pichai will head Google.
Google's reorganization is due to its growing businesses from being a sole internet company to its many tentacles. For this reason, Google would like to divide its businesses into operating units under a new parent company.
According to Financial Mirror, Calico, Nest, Fiber, Google's Capital and Venture programs, and Google X will all operate under Alphabet while core firms such as search, ads, maps, apps, YouTube and Android and the related technical infrastructure will operate under Google. The division of entities can give a chance for the management team to focus on the very core of its business and flourish each work strategically. This is also to manage financial allocation and human resources properly. Further, the division can help stockholders see a clearer and truer picture of their investments in the company.
Along with the restructure, report said that all of the shareholders of Google will be transferred to Alphabet moving forward. Its URL will also be changed into abc.xyz.
In the earlier news, Google announced that some executives will be kept in the persons of Eric Schmidt as Executive Chairman; Ruth Porat as CFO; David Drummond as chief counsel; and Omid Kordistani will become an advisor to Google and Alphabet.
Overall, Google will still offer the same services even if structural and managerial changes are ongoing.
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