Google is now playing a big game. Yesterday, Larry page announced his new company called Alphabet. It will be the parent company and Google will come under this brand. Larry page also appointed Indian born Sundar Pichai as a new CEO of Google.
The new stand-alone companies will have more freedom to take risks. They can continue to invest in experimental projects like driverless cars without interference from other units at the company, or investors worrying about the company wasting too much time and energy.
Alphabet will continue to trade under the GOOGL (GOOGL, Tech30) and GOOG (GOOG) ticker symbols when the change kicks in later this year.
There's already a new Alphabet website, abc.xyz, which includes a hidden link to the fictional Hooli.xyz website from the HBO comedy Silicon Valley. via CNN
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. via Google
Check full letter of Larry page.