Google’s co-founder Larry Page made the announcement that has many people wondering about the future of the world’s largest search engine. Early last week, Page announced that Google would become a subsidiary of the parent company called Alphabet.

Both Page and Sergey Brin (Google’s other co-founder) echoed in a press release that they are both excited for this change and also feel that it is a necessary evolution in a company’s life. Page explains:

“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”

What is Alphabet?

If you’re wondering about Alphabet’s role is in this reorganization of Google’s structure or even who they are, don’t panic. Most people hadn’t heard about the new company until Google’s announcement. Alphabet will become a parent company of multiple smaller organizations like Nest, Calico, and Fiber. Google will join these businesses as a part of Alphabet’s large umbrella of companies.

While Alphabet is a newer company, its structure of leadership looks similar to the old Google. The co-founders of Google are at the top of Alphabet’s organization management with Page as the CEO and Sergey as the President. In his press release, Page explains what Alphabet’s intentions are with the future of these independent companies. He says:

 “Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well.”

How will Google Change?

For most people, nothing about this new Google will look or feel any different. Sundar Pichai has been named the new CEO of Google, and even though the company is said to be a “slimmed down” version of the old Google, it will still remain one of the biggest companies of the world.

Continuing with Page’s explanation of Alphabet, he has outlined several of the priorities Alphabet will look to accomplish in the future. He explains Alphabet as:

  • Getting more ambitious things done.
  • Taking the long-term view.
  • Empowering great entrepreneurs and companies to flourish.
  • Investing at the scale of the opportunities and resources we see.
  • Improving the transparency and oversight of what we’re doing.
  • Making Google even better through greater focus.
  • And hopefully … as a result of all this, improving the lives of as many people as we can.

While the true impact of the restructuring is still being weighed and analyzed by business experts, most people can continue using Google as if nothing has changed.


Don’t forget to subscribe to our monthly newsletter!
Click Here to Subscribe