Sundar Pichai, an India-born technocrat, has been named CEO of Google in a surprise development with the company’s founders Larry Page and Sergei Brin moving to a new role as the CEO and President of Alphabet, Inc. a new holding company. Google is now a wholly owned subsidiary of the new entity.
Sundar Pichai was previously senior vice president of Android, Chrome and Apps at Google.
As Larry Page put it on Google blog:
“Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.
“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.”
All shares of Google will now convert to Alphabet stock, though it will still be known as GOOG and GOOGL. The company has also filed a Form 8-K with the US Securities & Exchange Commission.
As per the outlined plan US Securities & Exchange Commission, Google will retain control of Android, YouTube, Apps, Maps, Ads and Search. It will also keep control of unspecified technical infrastructure.
So what makes up Alphabet? It includes
- Life Sciences (the glucose-sensing contact lens people)
- Calico (which focuses on longevity)
- Nest (smoke alarms, home cameras, thermostats & connected home devices)
- Fiber (high speed internet)
- Google Capital (investment fund)
- Google X (auto-driving cars, Google Glass, internet by balloon, moonshots)
- Google (Search, Maps, YouTube, Android, Ads, Apps)
- Google Ventures (venture capital business)
Other things are still under smoke. For instance, it is unclear whether Project Fi, Google’s virtual mobile network will that stay part of Google or roll under Alphabet.
As for Pichai, he is only the third person to ever occupy that role at Google. Page was the first CEO, then Schmidt, then Page returned to occupy the position again. Pichai has the reputation of being a sensible, no-nonsense executive who gets stuff done.Sundar Pichai Takes Over as CEO of Slimmed Down Google!,