The Inevitability of Alphabet (abc.xyz) Google’s Parent Company
From the instance Google left the confines of our computer screens and ventured into our handsets with its groundbreaking Android OS, it has been inevitable that the growth of Google as a company will far exceed the reach of search and targeted ad delivery.
This has finally become a present reality. Google Co-founder Larry Page, on August 11, 2015, announced a shift in the focus of Google Inc., making it one of many properties owned by the newly formed Alphabet Holding Company, and assigning Sundar Pichai as the new CEO of Google.
What does this mean for Google and Alphabet its parent company, going forward?
From an overall business stand point, it signals a shift in focus: moving the business from a search / ad delivery service into a diversified portfolio of products and services that will rival any industry in the world.
Over the last few years Alphabet (then Google) has made hundreds of acquisitions ranging from home automation to ISP services and even dabbling in driverless vehicles, all under the umbrella of Google Inc. known primarily for its search and ad delivery services. This reality, as it was, has created share holder unease around the potential lack of focus on its core business.
Additionally, attempts to by Sergey Bin and Larry Page, to strengthen their control over Google Inc. by means of a stock split, was met with shareholder outcry and lawsuits in 2013.
Alphabet is an answer to these problems. It creates an umbrella organization which has control over many companies in varied industries, removing them from the uneasy pairing with Google Inc. in allowing them to grow into their own, for good or ill. This move also gives the New President, Sergey Brin and CEO Larry Page, of Alphabet more control over the direction and future of their organization.