On Monday, Google cofounder, Larry Page, released a blog post that began with a reference to his original founders letter, reinforcing the company’s unconventional ethos and Google’s commitment to “do things other people think are crazy but we are super excited about.” Page then proceeded to announce a major reorganization of the company, shifting the technology giant under a larger holding company called Alphabet.
According to the plans for the new operating structure, Alphabet will contain subsidiaries to separate Google’s core business—Search, YouTube, and Android— from newer, riskier ventures that the company has undertaken. In this move to appease both Wall Street and Silicon Valley, Google’s new holding company is set to provide more financial transparency to investors, while also allowing the corporation to pursue moonshot projects separate from its traditional products. As such, Google can maintain its status as an innovative and ever-changing behemoth.
In attempts to make sense of the details surrounding the announcement, here’s a breakdown of what went down after Google’s mic drop by blog post, and what you need to know about Alphabet.
1. What will remain a part of Google?
2. What will become a part of Alphabet?
- Calico, an anti-aging biotech company
- Nest, a maker of Internet-connected devices for the home
- Fiber, a high speed internet service
- Google Ventures and Google Capital, early-stage funding operations
- Google X, an incubator for projects such as self-driving cars
3. Cofounders Larry Page and Sergey Brin will now serve as CEO and President of Alphabet. Former SVP of products and long time Google executive Sundar Pichai will now head Google as CEO.
4. Alphabet will replace Google as the publicly traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet. Google shares also shot up more than 6 percent in after-hours trading after the restructuring announcement was released.
5. Why the name Alphabet?
“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’re still unclear on this one.
6. Alphabet.com nor @alphabet are owned by Google. BMW currently owns alphabet.com and Chis Adrikanich, who currently lays claims to the Twitter handle @alphabet, won the day.
Well, that was an interesting way to end a Monday…
— Chris Andrikanich (@alphabet) August 10, 2015
7. Google picked the address https://abc.xyz/ for Alphabet’s homepage. Buried in the Google founder’s Alphabet letter, there is an easter egg (hidden source code) that links to Hooli.xyz, a witty and meta reference to the Google-esque company, Hooli, from HBO’s “Silicon Valley.” Those jokesters.