Sundar Pichai was named CEO of Google following the absorption of Google to become a division within Alphabet Inc.
Google announced earlier this week the formation of its holding company, Alphabet Inc., which will be the 100% owner/parent company of Google from here henceforth. In addition, the co-founders Brin and Page will be President and CEO of Alphabet Inc., leaving day-to-day management of Google itself to Sundar Pichai, the newly appointed CEO.
According to a post released and published in Marketing Land, the newly formed entity Alphabet Inc. will be comprised of these entities:
- Fiber (for internet access)
- Google Ventures (venture capital investment)
- Google (Android, Maps, YouTube, Search, Apps)
- Google X (Google Glass, auto-driving cars, moonshots, internet by balloon)
- Google Capital (investment fund)
- Nest (home cameras, smoke alarms, connected home devices and thermostats)
- Life Sciences (Google’s contact lens which can sense glucose levels for diabetics)
This move has brought a lot of upheaval to the Internet world, especially with regard to understanding the driving force behind the move. To the best of our knowledge, it would appear to be an effort by the Google co-founders to distance themselves from the daily operations, and instead devote their time to management of their entire range of projects from the bigger picture perspective.
According to a statement by Page, the move will allow the two cofounders to concentrate on the longer term perspective and get to achieve their ‘more ambitious’ goals. He further argued that the move to trim down Google will allow the new CEO, Pichai, to give the company greater focus.
However, the clearer thing is that the co-founders will essentially have insulation from the pressure and growth expectations of Wall Street, which will now fall squarely on Pichai and his management team. However, the publicly traded entity will be Alphabet Inc., rather than Google.
We’re eager to see how the ranks and executives will handle the transition, especially given that the market has yet to decide how to react to the changes. The stock is still trading steady, a few days into the announcement. From a practical point of view however, these changes should have little to no effect on search marketing and/or search marketers.