Google undergoes a major overhaul, spins out a parent company "Alphabet"

[ratul]

Official Announcement: *investor.google.com/releases/2015/0810.html

Google just announced a major overhaul of its corporate structure.

As part of the change, the company that used to be called Google going to become a new holding company called Alphabet.

Alphabet includes the following entities:

1. A smaller company called Google, headed by CEO Sundar Pichai, that includes the company's core businesses. Those businesses: "search, ads, maps, apps, YouTube and Android and the related technical infrastructure."
2. Other businesses, "such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X," which "will be managed separately from the Google business."

Here's how the transition will happen:

Later this year, Google intends to implement a holding company reorganization (the "Alphabet Merger"), which will result in Alphabet owning all of the capital stock of Google. Alphabet will initially be a direct, wholly owned subsidiary of Google. Pursuant to the Alphabet Merger, a newly formed entity ("Merger Sub"), a direct, wholly owned subsidiary of Alphabet and an indirect, wholly owned subsidiary of Google, will merge with and into Google, with Google surviving as a direct, wholly owned subsidiary of Alphabet. Each share of each class of Google stock issued and outstanding immediately prior to the Alphabet Merger will automatically convert into an equivalent corresponding share of Alphabet stock, having the same designations, rights, powers and preferences and the qualifications, limitations and restrictions as the corresponding share of Google stock being converted.

Source: What is Alphabet, Google's new company? | Business Insider India

 

[avinandan012]

see I told ya skynet is coming. But only thing I missed is that it will not only be syknet but it will be a combination of skynet + Umbrella Corporation

 

[Desmond]

From a business point of view, this move makes sense. Google has an established image as an internet search company but it still has a lot of diverse products and technologies that are unrelated to search or web technologies such as self driving cars, etc. which might dissuade potential investors. By making a larger holding company, it would be easier for investors to examine what the company offers before they invest into it.

 

[$hadow]

This might be EU poking it's nose in Google way to much.

 

[kg11sgbg]

see I told ya skynet is coming. But only thing I missed is that it will not only be syknet but it will be a combination of skynet + Umbrella Corporation

But who will terminate whom?

Moreover who is our "Alice" the saviour??

 

[saswat23]

This is a sensible move anyways.

 

[Skyh3ck]

yes Skynet is coming and Skyh3ck is here to save you

 

[Vyom]

Here's how the transition will happen:

Later this year, Google intends to implement a holding company reorganization (the "Alphabet Merger"), which will result in Alphabet owning all of the capital stock of Google. Alphabet will initially be a direct, wholly owned subsidiary of Google. Pursuant to the Alphabet Merger, a newly formed entity ("Merger Sub"), a direct, wholly owned subsidiary of Alphabet and an indirect, wholly owned subsidiary of Google, will merge with and into Google, with Google surviving as a direct, wholly owned subsidiary of Alphabet. Each share of each class of Google stock issued and outstanding immediately prior to the Alphabet Merger will automatically convert into an equivalent corresponding share of Alphabet stock, having the same designations, rights, powers and preferences and the qualifications, limitations and restrictions as the corresponding share of Google stock being converted.

Source: What is Alphabet, Google's new company? | Business Insider India

Ok, that was some highly intellectual business stuff. Can someone explain in good ol' english?

 

[whitestar_999]

basically a holding company is kind of a remote control for other companies in the group.it is easier to manage(as it is small) & also easier to defend(against hostile takeovers,not like google need it but some companies do).as google is expanding too fast & too much creating a holding company is recommended option as it will allow for better & tighter control of google.once it is done all the google shares will be converted to alphabet shares as now alphabet will control everything related to google.

 

[Vyom]

^ Thanks.

Also read this good article on Quora: James Altucher's answer to Why did Google create Alphabet? - Quora


Also learned that.. abc.xyz is for Alphabet site.

What is funny though is abc.wtf. Try to open this and see the fun.

 

[whitestar_999]

good article & yes that was fun

 

[Anorion]

Also learned that.. abc.xyz is for Alphabet site.

tfs. that is one letter shorter than

Spoiler

bing.com