Google becomes alphabet, but Google continues to exist within the alphabet: if you have not understood the Google ads, last night, overview of the main issues.
What happened?
Google announced, to general surprise, a major restructuring in the night of Monday 10 on Tuesday, August 11th. The company changes its name Alphabet, a holding company that will oversee all group subsidiaries. The change should be effective in early 2016: Alphabet oversee a series of companies, including Nest (connected objects), Calico (fight against aging) and Google
Google a-. he disappeared
Not at all: the company continues to exist, but as a subsidiary of the new entity, alphabet. Google’s biggest public party keeps the name of Google. The search engine will continue to be called Google, and the names of services or products, like Gmail, Drive, and Android will not change.
So I do not need change my Google.com search engine Alphabet.com?
Not at all. Especially as the address Alphabet.com … not for Google. She is owned by BMW, and the site is currently inaccessible. Similarly, the Twitter accountalphabet give you little information about the new group, since it belongs to an illustrious unknown who has had a difficult day Monday:
This value Does it change something for the conditions of use of Google services?
In the short term, no. Google has harmonized there a year the conditions of use of its services – which has earned him sharp criticism of the National Commission on Informatics and Liberties (CNIL), France. Changes may however occur in the longer term, for example if a product of Google X works using data collected by Google, as it will involve two separate companies.
Why does Google changes its structure?
The explanations Larry Page, Google co-founder, are unclear. In his message released Monday evening, he evokes a renewal of the company need, but also the willingness to be more transparent. Clearly, this message, which is mainly for financial markets, indicates that Google is willing to further detail the costs and revenues of its subsidiaries. Simplifying, almost all of the turnover Alphabet actually come from Google, since the subsidiary will include all entities that generate money today: YouTube, Google Ads governed …
Deficit entities working on very long-term projects, such as Calico (fight against aging) and the laboratory Google X (unmanned cars, connected glasses, biomedical projects on renewable energy …), will be more clearly identified in the financial statements.
Are these the only reasons?
Although it has been enthusiastically received by the Exchange, this restructuring is quite incomprehensible . Google, which has published excellent results and had already met investor expectations by announcing cuts in its less directly profitable projects, did not need to proceed with the restructuring.
reorganization interest for Google, including its leaders. Google X, a project dear to many founders and which is headed by Sergey Brin in person, should theoretically benefit from renewed freedom by becoming a wholly owned subsidiary.
Finally, this new structure will be better equipped to resist certain types of proceedings for abuse of dominant position and provides new opportunities in terms of “optimization” Tax separating the most profitable and most unprofitable entities.
What are the other subsidiaries Alphabet
In addition to Google, which will be directed by Sundar Pichai, the rising star of the company, Alphabet will have seven subsidiaries: Nest (home automation and connected objects), Calico (fight against aging), Sidewalk (technology and urbanization), Fiber (Internet service provider), X (laboratory long-term multi-project), Capital (finance) and Ventures (investments). All are run by men – the only woman among the highest executives of the company, Ruth Porat, CFO will both Google and Alphabet
. Read also: Sundar Pichai, an ace of the mobile head of Google
This reorganization she has changed the balance of power in the company
Not at the moment. Leaders of subsidiaries remained those already employed with adjustments on securities. As noted by several observers, the new structure will also allow Google to create a new tier of management positions to reward employees it wishes to promote or hold back.
In fact, This reorganization changes nothing!
It is quite true … from the perspective of the user, and short-term. The changes are most important to investors. Above all, this restructuring foreshadows the coming changes: they will facilitate other reorganizations at all levels, or redemptions of other companies – Google has acquired nearly two hundred since its inception, with more or less success <. / p>
Why is he called “Alphabet”?
Officially, because it’s a pun on “alpha”, which refers to financial jargon a return on investment above normal, and “ betting “, which means “bet”. And this word has an advantage. It exists in a variety of languages
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