Google has now announced a most important revamp of its corporate structure and as a part of this change, the company which was called Google would now be a new holding company by the name `Google Alphabet’. The announcement was made on Monday forming an umbrella company Alphabet with a new CEO to handle core business of Google. Co-founders of Google, Larry Page and Sergey Brin would be running Google Alphabet, with Page as CEO and Brin as the President, Eric Schmidt – Executive chairman, CFO Ruth Porat and David Drummond-chief counsel.
The company founded in 1998 became public in 2004, announced its latest operating structure in a blog post called `G is for Google’. So Google will now be part of Alphabet, a new holding company which would manage Google together with all its other products. When questioned on the name of the company, Google/Alphabet CEO Larry Page stated that it was because Alphabet meant a `collection of letters representing language, one of humanity’s most important innovation and is the core of how we index with Google search’.
However, the name of the domain for Google Alphabet is abc.xyz and not alphabet.com. It seems like neither Google nor Alphabet own alphabet.com, but BMW. Alphabet is a part of the BMW group together with business mobility solution dedicated on fleet management as well as financing.
Shareholders One Alphabet on One Google Share
Alphabet had been founded in 1997 and hence it could be unlikely for the company to give up its long established domain name. The International Auto Finance Network awards were recently won by Alphabet International GmbH. All shareholders would get one Alphabet share on every Google share they earlier owned. Alphabet would comprise of the following:
- Smaller company, Google, headed by CEO Sundar Pichai inclusive of company’s core businesses – `apps, search, maps, ads, YouTube and Android together with the other related technical infrastructure’
- Other businesses, like `Calico, Nest and Fibre and its investing arms like Google Ventures and Google Capital together with incubator projects like Google X’, would be managed separately from the Google business.
Plans on a Holding Company Reorganization
Google plans to implement a holding company reorganization later this year, the `Google Alphabet Merger which will end in Alphabet having hold of all of the capital stock of Google. Google Alphabet at first would be a direct solely owned subsidiary of Google.
Then followed by Alphabet Merger, a newly formed entity – `Merger Sub’ a directly solely whole subsidiary of Alphabet as well as a indirectly solely owned subsidiary of Google would be merging with and into Google. Google would remain as a direct, completely owned subsidiary of Google Alphabet.
Every share of each class of Google stock allotted and outstanding prior to the Alphabet Merger instantly would be automatically converted into an equivalent corresponding share of Google Alphabet stock with the same designations, powers, rights as well as preferences together with the qualifications, limitations and restriction to the corresponding share of Google stock on being converted.
Users will not get affected at all and most of the popular products of Google which are usually utilised daily would be staying under the Google umbrella and would also continue to operate the same way as they always did.