Google Inc. is definitely upping the game in the investing world as they create another holding company called Alphabet Inc. set to replace Google as the publicly traded entity.
Google Inc. has been tremendously successful in gaining profits, sustainable returns on investments, dominating the search engine market, and acquiring top companies such as You Tube and Google Maps. Despite the success, the company now introduces us to their new business venture: Alphabet Inc.
Google Inc. was initially founded by Sergy Brin and Larry Page way back 1998 in The Mountain View. Since then, they have consistently grown, employing around 40,000 workers internationally.
According to The Business Insider, they will be changing their operating structure with the creation of Alphabet Inc., to be reigned by Larry Page as Chief Executive Officer and the CEO of Google Inc. Sundar Pichai as Senior Vice President.
Alphabet Inc. will replace Google as the publicly-traded entity in the finance world wherein most terms of the business retain the same rights and number of shares as Google Inc. had.
The expected CEO of the new company Page revealed what to expect out of the company in his blog post stating: "This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google..." This is a hint that such business venture would be a good opportunity for investors to engage in since Google Inc. has consistently succeeded in the market for many years already.
According to Reuters, Alphabet Inc. will contain subsidiaries not related to its core web advertising business and turn its focus on investing on driver-less cars and other independent business for the purpose of relaying transparency and fiscal discipline in its business units.
Furthermore, when Google Inc. announced the creation of Alphabet Inc., its shares rose up to 7% to $708 in after-hours trading.
Do you think that Alphabet Inc. will enjoy the same amount of support, success and more investors like Google Inc. before it? Do you think that this new venture will open more doors to businesses who need to innovate on their investment strategies to adapt to the changes in the market?
