Alpha-Bet haven: Things to know about the Google's umbrella holding company

Alphabet is Google's new umbrella holding company within which each of its businesses including Google and its other tech-driven initiatives will function as independent business units. The restructuring, cofounder Larry Page says, is to ensure that the company does not slowdown in innovation.

In a blog post, announcing the changes Page wrote: "In the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant..we think we can make it cleaner & more accountable." Alphabet will have Page as CEO and Google cofounder Sergey Brin as president. Each technology-led business within Alphabet will have its own CEO. Sundar Pichai will be the CEO of Google.

WHAT IT MEANS FOR SHAREHOLDERS?

Alphabet is the new name for the company that used to be Google. Google shares will become Alphabet shares but continue to trade under existing tickers. Google earnings to be separate.



WHAT WILL FOUNDERS DO NOW?

Page will be CEO of Alphabet, Brin will be its president. The duo also wants to focus on new things. The new structure will allow them to create new projects—expect more moon-shots.

WHY CREATE A NEW COMPANY?

Google started as a search engine on September 4, 1998. Over time it has become much more than a search engine. Google today has multiple products including YouTube, Android, Gmail and new projects like balloonpowered internet access, self-driving cars, anti-ageing technology, Google's XLab, which incubates new ideas. These projects and entities are too diverse and large and many of them like Gmail and Android have more than a billion users each, worldwide. Each company and project has a distinct identity — like driverless cars and anti-ageing are as different as chalk and cheese, and need different leaders and management styles. Alphabet as a holding company will oversee all these diverse ventures — and any new ventures in future.