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GOOGLE HAS JUST announced a major overhaul of its corporate structure.
As part of the change, the company that used to be called Google is going to become a new holding company called Alphabet.
Shareholders will get one Alphabet share for every Google share they previously owned.
The executives in charge of Alphabet will be the same execs in charge of Google today — CEO Larry Page, President Sergey Brin, Executive Chairman Eric Schmidt, CFO Ruth Porat, and chief counsel David Drummond.
Alphabet includes the following entities:
Here’s how the transition will happen:
Later this year, Google intends to implement a holding company reorganisation (the ‘Alphabet Merger’), which will result in Alphabet owning all of the capital stock of Google.
Alphabet will initially be a direct, wholly-owned subsidiary of Google. Pursuant to the Alphabet Merger, a newly formed entity (‘Merger Sub’), a direct, wholly-owned subsidiary of Alphabet and an indirect, wholly-owned subsidiary of Google, will merge with and into Google, with Google surviving as a direct, wholly-owned subsidiary of Alphabet.
Are you still with us?
Each share of each class of Google stock issued and outstanding immediately prior to the Alphabet Merger will automatically convert into an equivalent corresponding share of Alphabet stock, having the same designations, rights, powers and preferences and the qualifications, limitations and restrictions as the corresponding share of Google stock being converted.
More information is available here.
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i didn’t understand the last two paragraphs and that is why I am poor
Don’t worry, it’s an excuse for them to get ahead of Apple in the Bloomberg Ticker list, which is ordered alphabetically for Fortune 500 companies.
Alphabet it, Just not sounding the same as Google it.
Why?
money! something like this doesn’t happen without someone lining their pockets with it
Tax avoidance I.d say.
Who’s the lazy person that came up with such a name!? And the idiots the thought it was cool..Alphabets? Like seriously? (Kim K’s voice).
Tax. As they didn’t pay little enough already.
Google has used the next letter of the alphabet for each of the software releases… so you get cool things like jellybaby, kitkat and lollipop. (not said in a hobbits voice that is married to a gay fish)
they just want to be above Facebook and Apple in the Yellow pages.
Facebooks phone number is just an automated one. Directing you to look up things through the site. It’s about pointless them having one tbh.
The headline suggests that they will be changing the search engine name Google to the other , Which isn’t the case..
It’s called click bait. I clicked on it thinking the same. The journal are divils for it lately
Makes sense, Alphabet can now go off and do the crazy things such as Loon, Calico, acquire new start ups etc, while Google can refocus on the day to day things like Search, Android, Maps, Gmail.
I’m sure when I was younger my parents hated me. When I used to ask for alphabet spaghetti, the letters would be arranged on the side of my plate reading ” F#ck Off “
Now that they are not Google anymore they can be evil without fear of breaking their corporate motto.
How much will be funnelled through Ireland with a sweetheart tax deal?
Ho hum. The wealthy get wealthier by another scheme.
it’s a business. are you just having a moan?
https://twitter.com/alphabet/status/630851210665439233?s=09 this guy is apparently in talks to sell his Twitter handle.
jammy fecker….
Beginning of the end…
This means the shareholders and the board have grown weary of Google diverting its profits into acquisitions, pet projects and lavish staff benefits they doesn’t see it making returns on.
In a week or two they’ll start calling everyone in and asking them to rationalise their jobs with the goal of turning one side of Google into a lean mean ad revenue machine… And the other half will have a razor taken to anyone who’s doesn’t look like they will be bringing cash in anytime soon.
Sure that’s all Google is, an advertising company. If it’s free, you’re the product.
Need more information. Going on Bing.
silly. ….why change something that works and is a very valuably brand?
They won’t be changing the branding. Google will still be Google.
This will allow them to file separate returns for the different sub companies under Alphabet. So losses in one section won’t affect profits in another. Also, breaking up the company into different entities may help with the various antitrust investigations they’re facing.
I meant to add: you can be guaranteed that if Google do something like this, it’s far from silly. Not that they don’t make mistakes – they sure do, but they’re not a company to act rashly for no good reason.
Grigori….Thanks for the explanation. …What you posted makes good sense
Alphabet would be a great name for a bookies
yea i wonder if they’ll be needing it, or alphabet.com or alphabet.ie, but google remains google. i don’t know though if it could be deemed generic but in terms of searching for words using letters from the alphabet in their case it could be.
alphabet.ie is im use a fantastic printers in South Dublin
The company that ate itself.
Lysosomal Economics
NSA’s strong house lol. In Jewish terms alpha-bet, strong house…
have your say