Google announced on Monday that it will be radically reforming its business structure. This is in the form of a new holding company called Alphabet, which will be run by Google founders Larry Page and Sergey Brin. It will now own Google and everything it has created or acquired. The smaller, leaner Google, now answers to Sundar Pichai, and will focus more on its core Internet services, such as Google Maps, YouTube, Chrome, and Android.
There are many rumours circulating Google’s reasons to reform. Some have questioned whether it’s a move to preempt the EU in demanding it split its Internet services from other areas of the business, but it seems most experts are not so convinced.
There are other murmurs about whether it’s a questions of financial security. Investors were never a huge fan of Google’s ‘moonshot factory’. It appears to be a smart move for a business that’s ambition is to fund high risk, “science fiction sounding” projects.
The Google brand was in danger of being overstretched by encompassing everything from nanoparticle platforms to spoons. We believe that with the creation of Alphabet that the same spirit of limitless curiosity will live on, but without its success – and failures – being bound to the Google name.
This originally appeared in Moving World Wednesday 20150812
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