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Google unveils parent company

Admin | 11:10:00 PM |
GOOGLE’S founders have created a new mega company that could have no lesser ambition than to change the world.

Google, which has been expanding far beyond its original business of internet search advertising, is changing its operating structure by creating a new holding company called Alphabet.

The company says its new structure will give more independence to its wide-ranging and ambitious projects.

Some have speculated that Google CEO Larry Page, who will become CEO of Alphabet, is no longer interested in focusing on the everyday operations of Google, such as how to increase the cost per click. Instead his sights seem to be aimed firmly at how to drive change in the world.

In a blog post announcing the restructure, Mr Page wrote that Google had always aimed to be a company that did more, and invested in speculative areas. "We did a lot of things that seemed crazy at the time. Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. And we haven’t stopped there," he said.

"In the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant."

Certainly Alphabet’s structure seems to reflect this new ambition.

Under Alphabet, a slimmed down version of search unit Google will sit alongside the company’s more ambitious projects. This includes research arm X Lab, responsible for technology like self-driving cars, as well as drone delivery project Wing, Google Fiber, Nest, health research firms Calico (focused on longevity) and Life Sciences (overseeing development of glucose-sensing contact lens) and the investment arm Google Ventures. Each of these will have their own chief executives.

"Sergey and I are seriously in the business of starting new things," Mr Page said.

"Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related.

"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."

Mr Page said they had chosen the name Alphabet because it means "a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search. - news.com.au