Why Is Google Becoming Alphabet? | TechTree.com

Why Is Google Becoming Alphabet?

It would now be more possible to focus on Google as a product even more than before.

Why Is Google Becoming Alphabet?

Google announced on Tuesday its restructuring and creation of a new parent company by name Alphabet Inc.

Well, at first, it seems like nothing much is going to change and Google shareholders will get one new share in Alphabet for every Google share they currently own. But, looking deeper, it's a big deal and a fresh start for the company.

As we all know, Google which was started as a search engine dabbled in many things lately. The company owns popular OS Android, most commonly used email service Gmail along with some other online office productivity services like Google Docs and a popular web browser Chrome.

The list doesn't end here. YouTube, the world's most popular video website also belongs to Google even if it has very little to do with everything else Google does.

Apart from this, Google raises it hands while talking about self-driving cars, Google Glass and drones to name a few.

While this looks a little clumsy, the new move by Google, i.e., the formation of Alphabet Inc., is actually separating the popular search engine with ad revenues from the ventures that have yet to pay off.

With this new move, Google is now just one venture among several under the Alphabet holding company which we believe to give the emerging spaces and some more breathing space to their top executives to build their businesses. It will also give investors better visibility into the core business of search, something that investors love, and which was reflected in a 6% surge in Google's share price soon after the announcement was made.

Page and Sergey also announced that through the creation of Alphabet, each business will have its own CEO while the founders are in constant touch with them as and when needed.

Also, with the formation of Alphabet, it would become more possible to focus on Google as a product even more than before which includes search, advertising, maps, YouTube and Android.

Tags : Google, Alphabet, Sundar Pichai