Google Reorganises Corporate Structure

Earlier this month, Google made new waves when they announced the implementation of a corporate restructure, in which they’ll reorganise under the name “Alphabet,” of which Google will just be a division or subsidiary.

Given the extent to which Google diverged from its original business, namely search, it’s not surprising that some of their further reaching efforts will be split off from that core business.

According to Google, the restructure will allow operati9ng divisions of the company more leeway, while allowing the parent corporation to retain its flexibility and ability to innovate.

Addressing Investor Concerns

According to analysts, this latest move allows Google to address investor concerns about expenditure and transparency, giving the company the opportunity to separate their central money-making business from other, potentially more far-fetched (or should that be visionary) efforts.

It raises its own questions as well of course, like how Google (or Alphabet) will allocate funds for some of those projects, but overall it appears most analysts consider it a sensible move.

What Will Be Alphabet?

Among others, projects such as Google Fibre, Google Ventures and Google Capital will be reconstituted as stand-alone entities under Alphabet, but Alphabet itself will not be a consumer brand.  Instead, the companies under Alphabet will be relatively independent, and able to develop their own brand presence.

You can read the official announcement from Larry Page, the new CEO of Alphabet, here: