On Monday, August 10th, Google announced that they are going to be expanding their company by becoming “Alphabet.” Cofounder and CEO of Google Larry Page explained in a press release that Google will only be a subsidiary of Alphabet and will be “slimmed down,” with Sundar Pichai acting as the new CEO. Alphabet will contain all of Google’s business ventures, such as Calico (the company with a goal of curing death), Google X (the company that is creating self-driving cars), and Google Capital (the company that does investing), as well as several others, and will have Page as CEO. In the announcement, Page explained, “Google is not a conventional company” and that “[Google] is operating well today, but…we can make it cleaner and more accountable.” The intent of the new, restructured company is to have a separate CEO for each subsidiary of Alphabet so that “tremendous focus” can be kept on the “extraordinary opportunities” inside Google. Since the announcement was made, shares of Google have increased by nearly 6%, raising the value of the stock to $700 per share (a record high for Google). Google shareholders will get one share of Alphabet for every share of Google that they owned.
Contributor: Claire Pacek