Google Alphabet And The Role Sundar Pichai Plays


Google Alphabet has been the buzzword since yesterday when the leaders announced that they are turning the company into “a subsidiary of new companies” which will be called Alphabet. The news was announced by Google’s co-founder in a blog post yesterday (Monday, 10th August).


Google co-founders, Larry Page and Sergey Brin will run Alphabet; Page as the CEO and Brin as the president.

Google Alphabet

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Sundar Pichai, former vice president in charge on products at Google is now the CEO of Google as announced on Monday.

Sundar Pichai

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Moreover Alphabet will now be the official publicly-traded company and all of Google’s shares will be automatically transferred to Alphabet. The sudden change by Google is marked as a huge step and has shocked the technology world.


Page writes explaining Google Alphabet,

What is Google 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. Alphabet is about businesses prospering through strong leaders and independence.

In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation. In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole.”


Here’s a video explaining Google Alphabet:


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