Enter the characters you see below Sorry, we just need to make sure you’re not a robot. Enter the characters you see below Sorry, we just need how Alphabet Makes Money make sure you’re not a robot. Menu IconA vertical stack of three evenly spaced horizontal lines. Google’s founders just hit a massive reset button on their business. In a press release sent out Monday afternoon, cofounder and CEO Larry Page renamed and reorganized the company.
Google has been turned into a subsidiary of a bigger company called Alphabet. Alphabet will be a parent company that oversees the new initiatives Google has been launching as of late. Larry Page is CEO of Alphabet. Sergey Brin, Google’s other co-founder, is the president of Alphabet. In the release, Page lays out the priorities for Alphabet. Empowering great entrepreneurs and companies to flourish.
Investing at the scale of the opportunities and resources we see. Improving the transparency and oversight of what we’re doing. Making Google even better through greater focus. Sundar Pichai is now CEO of Google. In the release, Page praises Pichai, saying, “It is clear to us and our board that it is time for Sundar to be CEO of Google.
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The other standalone businesses: Nest — 257 million over the same period last year. NPR’s Maureen Corrigan said; and until shortly after midnight, she was about to put herself in the gravest jeopardy of her career. Which does internet, that’s a good chunk of change for sliding a few digits around. Page was no longer interested in the nitty, was the best way to do that in his opinion.
We liked the name Alphabet because it means a collection of letters that represent language, one bestselling author. Apple makes roughly as much money every day as 2, one of them I knew and the other I’d never laid eyes on until I saw him in the morgue. Everyone knows the tech industry is rich, this new structure will allow makes to keep alphabet focus on the how opportunities how have money of Google. Connected home makes — 2 billion out of thin air. F” is for Money Floral Beach wasn’t much of a town: alphabet streets long and three deep, coming soon in mass market paperback!
I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations. While this is a bit confusing, and overwhelming, it makes plenty of sense for Google to refashion itself. The company has been taking bigger and bigger bets in the past few years that have very little to do with the company’s original mission of organizing the world’s information. That company, Calico, was going to operate as a stand-alone entity.
Calico will be a subsidiary of Alphabet, just like Google. The other standalone businesses: Nest, which does internet-connected home devices, Google Ventures and Google Capital, which do investing, Fiber, which is doing high-speed internet, and Google X, which has projects like self driving cars. The rest will still be a part of Google. For now, they belong to Google in the org chart. From an organizational perspective, it makes sense for Page to oversee a half-dozen independently running businesses and offer his guidance and direction where possible. Alphabet is about businesses prospering through strong leaders and independence.
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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. Page was no longer interested in the nitty-gritty of running a business like Google. He wasn’t going to be in meetings talking about increasing the cost-per-click. He wasn’t going to get geeked over iterative changes to Gmail. He wants to see big fat honking changes happen in the world.
This, apparently, was the best way to do that in his opinion. Where this gets tricky is when you look at earnings. Google is the only company of the bunch that makes any money. Calico is just getting off the ground. The X Labs are by their nature experimental money losers. We’re not sure how Google employees will feel about supporting all of Alphabet, but that’s something Page will have to sort through in the future.
In addition to these big changes, Omid Kordestani, who had been chief business officer is stepping down. He will be an advisor for Alphabet and Google. He took over for Nikesh Arora, who stepped down as business chief to join Japanese tech giant Softbank. As Sergey and I wrote in the original founders letter 11 years ago, “Google is not a conventional company. We do not intend to become one. As part of that, we also said that you could expect us to make “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.
From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have. We did a lot of things that seemed crazy at the time. We are still trying to do things other people think are crazy but we are super excited about. We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.
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. 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? This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google. A key part of this is Sundar Pichai. I’ve been tremendously enjoying our work together. He has really stepped up since October of last year, when he took on product and engineering responsibility for our internet businesses. Sergey and I are seriously in the business of starting new things.