Say Hello to Alphabet!
Google, one of the most valuable companies in the world with $434 billion market capitalization, announced a major restructuring by creating a new holding company named Alphabet Inc. This new company will manage each of its current businesses under one giant umbrella.
But what does this new Alphabet really mean to us, the users and consumers? Here’s everything (well, almost) we need to know.
1. Alphabet won’t change your internet search experience
Yes. You can still use Google and You Tube search engine as the way you have been using. Alphabet won’t interfere. Google will be in control of these services, under parental supervision of Alphabet, of course.
2. Your Google shares will be automatically converted to Alphabet shares
If you own stocks in Google, don’t be afraid. This reorganization won’t affect your shares any way. All your current shares at Google will be automatically converted into Alphabet’s shares. Your rights will be the same and the shares will continue to trade on Nasdaq as GOOGL and GOOG.
3. Alphabet won’t be a consumer brand anytime soon
We are now very much familiar with Google-branded hardware devices, like Google Nexus smartphones and internet-TV enabled Google Chromecast. But don’t expect similar line of consumer products from Alphabet for now. Google co-founder Larry Page said in unveiling Alphabet, “We are not intending for this to be a big consumer brand with related products.”
4. Alphabet will take care of every units of Google
Every units run by Google at present, will be looked after by a bigger giant named Alphabet. The new holding company will manage Google Inc., Google Ventures, Google Capital, Google X, Fiber and the “far afield” units. Page explained the “far afield” units as the ones which are not directly related to Google’s internet products, such as “Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity)”. He mentioned nothing about Google’s driverless cars and robotics ventures though.
5. Alphabet added 6% to Google’s brand worth
Google’s this week’s announcement of restructuring has added 6% to its overall brand worth and added more than $20 billion in its overall market cap. Whoop!
6. Google doesn’t own Alphabet.com
That’s right. Google is now Alphabet alright, but neither Google nor Alphabet own Alphabet.com. Instead, BMW does. All information about Alphabet is currently available at abc.xyz. Because the domain Alphabet.com is already registered by BMW since 1997. Well, this is going to get really confusing.
But, it’s Google. We are sure they will work this out.