Larry Page CEO of Google said “Google is not a conventional company. We do not intend to become one“. 11 years on he is staying true to his word and starting the process to ensure that doesn’t happen. Google as we know it is changing, in a surprise blog post it was announced they are creating a new company, called Alphabet, it consists of the clever and typically Google URL http://abc.xyz, with Larry Page taking on role of CEO with help from Google co-founder Sergey Brin as president.
Alphabet is mostly a collection of companies, the largest of which, of course, is Google.
There is going to be a range of companies that will be housed under the Alphabet umbrella.
The new Google is to be “slimmed down” to give better financial and people management, as well as the ability to allow other companies in the portfolio that aren’t closely related, to be independently run. Each company under the new umbrella company will have a strong CEO with Page and Brin on hand if needed; making sure each business is run smoothly. More importantly they plan to segment the Financial Reports, so Google financials will be provided separately to the rest of the umbrella company’s brands, allowing a clear understanding of the individual success within each company.
An idea of how the new the structure will look under Alphabet
This all taken into account; advertising currently makes up 90% of the company’s revenue. Page and Brin will have more time to focus on starting new things. Alphabet will include their X Lab, which will incorporate new efforts like Wing and drone delivery. So, is the reason for the split to be able to dedicate more time and effort to increasing revenue from side projects? Or is the whole purpose of this umbrella to maximize Google revenue by using the side projects to not only increase ways we advertise, but also the audience available for advertising. Project Loon certainly makes it look that way, a proposed global network of high-altitude balloons for bringing wireless internet to rural and remote areas, allowing for millions of new internet users, which can only multiply Google’s power. If this is case it can only be good news for equimedia!