Larry Scheinfeld: What’s Google Alphabet?

Google recently readjusted their business structure and introduced a parent company that will now house Google and its counterparts, called Alphabet.

Alphabet will be run by Google co-founders Sergey Brin and Larry Page; Sundar Pichai, formerly the senior vice president of product, will assume the role as Google’s new CEO. The tech giant’s announcement came as a bit of a surprise as it took news publications by storm but the structural change is well in-tune with Google’s roadmap.


Alphabet’s inception plans to give former Google companies the ability to build their own brands and allows Google to focus on different types of products among their different ventures. This move also helps Google retain top talent because it allows the CEOs of their acquired companies to still hold rank within their entity.

“The whole point is that Alphabet companies should have independence and develop their own brands,” said Page in the announcement.

Seven companies will exist under Alphabet, one of which is Google. Calico – research and biotech development lab, Google Ventures, Google X, Fiber, Google Capital, Nest, and Google itself now live under the new parent company.

Since the announcement of Alphabet, shares rose 6%. A relatively massive increase and a sign of belief from not only Google’s consumers but more importantly, Google’s investors. The public is more than likely going to see a larger plan than Google once actively publicized. It’s said that the creation of Alphabet gives Google a better ability to focus on future innovative products that affect the population on a grander scale. This includes their involvement with life sciences, research through their independent labs, and a few other ventures directed to improve society as a whole.

Alphabet will continue trade under GOOGL and GOOG stock symbols even when the umbrella company change manifests this year.