In a surprise blog post on Monday, Google announced a new organization restructuring plan that puts Sundar Pichai in the CEO position at Google and co-founders Sergey Brin and Larry Page at the head of new holding company Alphabet.
Under the new organization, Google would maintain control over Android, search, YouTube, apps, Maps, and ads. Alphabet will now be over Google, in addition to Calico, Nest, Google Ventures, Google X Labs, Google Capital, and Fiber. The blog posts explains that under the new organization, each business under the new organization will also receive its own CEO and management team.
The new structure involves new financial implications for the company. In a new SEC filing that came with the announcement, all Google shares will now be traded as shares of the new and larger Alphabet holding company. Shares of the company jumped 4% on Monday following the news.
The news has caught both Wall Street and much of the tech world by surprise. However, it’s not too wild considering the shift Brin and Page have been taking towards their more ambitious projects. The new structure allows the two to focus more on their ventures launched through Project X and outside funding without distracting from Google’s core businesses.
Sundar Pichai has been a rising star within the company, albeit very quietly. Pichai is the former Chrome OS and Android chief and has been playing an increasingly vital role at the company. “It is clear to us and our board that it is time for Sundar to be CEO of Google,” said Page in the post on Monday.
While Rainmaker Internet Marketing is focused on custom online marketing solutions, the news has large implications for everyone in the digital space as Google is an industry leader in search and small business tools.
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