Big bang at Google with the creation of the holding company Alphabet – Les Echos

Google becomes Alphabet. A name full of promise for the Silicon Valley giant, which announced Monday night a major reorganization, with the creation of a holding company under which are now housed all its activities, starting with the famous search engine. This new structure will be the parent of all the group’s businesses – a “Business Collection” in the words of CEO Larry Page who shared the news through a letter on his blog. It will therefore soon its securities to be quoted and not those of Google Inc, which will be converted into shares Alphabet. A symbol: beyond the organizational change, the new group’s architecture reflects its history, that of a start-up of the Internet became a real conglomerate valued $ 445 billion.

As in all groups controlled by a holding company, Alphabet is intended to be a lightweight structure compared to the current Google and allowing more autonomy to subsidiaries they retain an entrepreneurial spirit. She will oversee all business developments off the web, such as health, science or Calico, the biotechnology company – these companies will report directly to him. Businesses related to the Internet, such as advertising, mapping, Android OS or YouTube will remain, in contrast to the bosom of Google, which will become a holding company fililale.

“Our business works well today, but his organization could be cleaner and more efficient, summed Larry Page on Monday on his blog. This will make the management more efficient, allowing us to run independently of the activities that have nothing to do with each other. It will be for the Alphabet to grow independently and with strong leaders. (…). Sergey and I will be there to help. ” By clarifying the organization, the group’s restructuring also responds to fears of some investors who fear that the group disperses in somewhat iconoclastic projects such as the driverless car or pill that detects cancer.

management side too, the big bang has effect. This is Larry Page will take the general direction of Alphabet, while the co-founder Sergey Brin will be the President and the Executive Chairman Eric Schmidt. Sundar Pichai, 43, hitherto responsible for the products, for its part, becomes General Manager of Google. Ruth Porat, financial director of Google freshly appointed, meanwhile become CFO of the holding company.