It’s Official: Google Becomes ALPHABET

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Yes, It’s official — Google is now “Alphabet.”

Internet Search engine giant Google has officially has converted into new parent company Alphabet Inc. after US markets closed on 2 October 2015. Company had made legal filing for officially establishing the new parent structure of Alphabet without any changes in their day-to-day operations. After closing of US markets, shares of Google stock (both Class C and A) were convert into shares of Alphabet stock.

In this exchange the tickers will remain unchanged as GOOG and GOOGL respectively. With this Google’s core flagship business entities encompassing search, YouTube Android will be a wholly-owned subsidiary of Alphabet.

Google’s smaller units like the hardware maker Nest, moonshot factory Google X will now set up their own companies under Alphabet Inc.

Google CEO – Sunder Pichai

In August 2015, Google had announced to blow up its corporate structure by forming a new parent company called Alphabet.

It wanted to allow its different businesses to operate independently and move faster with each division having its own CEO.

Larry Page – CEO of Google Now Alphabet
The recasting of Board of Directors is done in a way that would comprise:
  • Larry Page as the Chief Executive Officer (CEO)
  • Sergey Brin as the President
  • Eric E. Schmidt as the Executive Chairman of the Board of Directors
  • Sundar Pichai as the CEO of Google
Further, a noticeable change seen will be, this time the company releases its Q4 financial results in January, i.e. it will report earnings for two different components of Alphabet:
  1. Larry Page’s Alphabet
  2. Sundar Pichai’s Google
Alphabet includes:
  • Calico (life-extension biotech research)
  • Nest (smart home products)
  • Fiber (high-speed Internet service)
  • Ventures (early-stage investing)
  • Capital (growth-stage investing)
However, the stockholders of Google will not face gain or loss for the United States federal income tax purposes upon the conversion of their shares in the Alphabet Merger.

 

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