wordpress blog stats
Connect with us

Hi, what are you looking for?

The lowdown on Google’s “Alphabet” restructuring; Sundar Pichai now CEO of Google


First up: this is not a joke.

Google is now becoming a part of a holding company called Alphabet, which will have Larry Page as CEO and Sergey Brin as President. Sundar Pichai will now be the CEO of Google. Both Microsoft and Google now have Indian-born CEOs. Eric Schmidt will become Executive Chairman of Alphabet.

Pichai joined Google in 2004, and, prior to his current role, served as Google’s SVP of Android, Chrome and Apps.  Sundar has a B.Tech. (Hons.) from the Indian Institute of Technology Kharagpur, a M.S. from Stanford University, and an MBA from The Wharton School of the University of Pennsylvania.

Read a Q&A with Pichai when he was in India last year, where he talks about developing for mobile, Voice & Google Now, standardization of Android

The lowdown

1. Why is this happening?

Advertisement. Scroll to continue reading.

a. Addressing possible future anti-trust issues: Google is a conglomerate and its scale is such that it is involved in many projects which are leading in their own segment (Search, Maps, YouTube, Chrome, Android), some of which are facing anti-trust challenges: there was always search, and now Android is also being investigated in the European Union. While at present these businesses will remain a part of Google, in case there is any anti-trust action pushing for the split of Google into separate companies, it will allow Alphabet to neatly fit these businesses under the Alphabet umbrella as independent businesses, and even say that that was always a part of the plan.

Note that there are potential anti-trust issues being investigated with Google search in India, and a report is expected shortly.

b.  More freedom to grow each project separately: Page says in his blog post, that companies tend to get comfortable with doing the same thing and just making incremental changes, and “in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”

2. Which projects are a part of Alphabet?

So far, the website hasn’t got enough information, but Page’s blog post suggests that, for now, Alphabet includes:

– Life Sciences (that works on the glucose-sensing contact lens)
– Calico (focused on longevity)
– Google X lab, “which incubates new efforts like Wing, our drone delivery effort”.
– The investment arms: Google Ventures and Google Capital
– Nest

3. Which projects are a part of Google?

Advertisement. Scroll to continue reading.

– search
– ads
– maps
– apps
– YouTube
– Android

4. How will this work?

There will be a CEO for each business, with Brin and Page handling capital allocation and working to make sure each business is executing well. In terms of quarterly disclosures, Google financials will be provided separately from those of the rest of the Alphabet businesses.


The company says: “Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.”

Changes in roles

– Larry Page will become the Chief Executive Officer (CEO) of Alphabet
– Sergey Brin will become the President of Alphabet
– Eric E. Schmidt will become the Executive Chairman of Alphabet
– Ruth Porat will become the Senior Vice President and Chief Financial Officer (CFO) of Alphabet and CFO of Google
– David C. Drummond will become the Senior Vice President, Corporate Development, Chief Legal Officer and Secretary of Alphabet
– Omid Kordestani will transition from his role as Google’s Chief Business Officer to become an Advisor to Alphabet and Google.

Advertisement. Scroll to continue reading.


MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....


By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...


By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...


By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...


This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like


In an interview with BBC’s Amol Rajan, Google CEO Sundar Pichai shares his views on a wide range of topics including the free and...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ