“Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO, who runs each business, with Sergey and me in service to them as needed.”
With this initiative Larry Page and Sergey Brin combined all Google products and services offered by the company under one platform ALPHABET.
According to Google’s investor blog, newly Publish Holding Company ALPHABET has taken place at the closing of business on October 2, 2015.
Now Google is officially a subsidiary of ALPHABET and owning all of the outstanding capital stock of Google.
Until now, the ticker symbol used by Google Inc. in the stock market was “GOOGL” and “GOOG” which are kept same even after their merge in ALPHABET.
This makes Google Class C Capital Stock and shares of Google Class A Common Stock being traded as Alphabet Class C Capital Stock and Alphabet Class A Common Stock.
The recasting of Board of Directors is done in a way that would comprise:
- Larry Page as the Chief Executive Officer (CEO)
- Sergey Brin as the President
- Eric E. Schmidt as the Executive Chairman of the Board of Directors
- Sundar Pichai as the CEO of Google
More, a noticeable change will be seen when the company will release its Quarter 4 financial results in January. It will report earnings for two different components of ALPHABET:
- Larry Page’s Alphabet
- Sundar Pichai’s Google
- Calico (life-extension biotech research)
- Nest(smart home products)
- Fiber(high-speed Internet service)
- Ventures (early-stage investing)
- Capital(growth-stage investing)
However, these all changes will not affect the stockholders of Google, they will not face gain or loss.