{"id":44580,"date":"2023-10-20T15:37:00","date_gmt":"2023-10-20T15:37:00","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/does-alphabet-spell-success-for-google-startupsmart\/"},"modified":"2023-10-20T15:37:00","modified_gmt":"2023-10-20T15:37:00","slug":"does-alphabet-spell-success-for-google-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/does-alphabet-spell-success-for-google-startupsmart\/","title":{"rendered":"Does Alphabet spell success for Google? – StartupSmart"},"content":{"rendered":"
Google has taken the idea of a company reorganisation to a new level with a restructure that sees the creation of a new overall parent company called Alphabet.<\/p>\n
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Founder Larry Page will be Alphabet\u2019s CEO with his co-founder Sergey Brin, its President. Sundar Pinchai will become the new CEO of the existing Google company.<\/p>\n
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Google itself will be slimmed down and will become one of the subsidiary companies, along with:<\/p>\n
Alphabet\u2019s new url, https:\/\/abc.xyz\/, reflects the quirkiness of the new structure, although this may have been because the domain alphabet.com has already been claimed.<\/p>\n
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In fact, Alphabet\u2019s creation has spurred a race to create domains, Twitter, Instagram and other social media accounts that Google may want. An earlier Twitter account, @aIphabetinc (with a capital \u201ci\u201d instead of an \u201cl\u201d), was mistaken as Alphabet\u2019s official account and has now been suspended. Another account, @GoogleAlphabet is likely to meet the same fate.<\/p>\n
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There are a range of business reasons why the restructure makes some sense. First and foremost, Google found it difficult to justify the diversity of its interests when its primary moneymaking business is online advertising.<\/p>\n
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So being a division rolling out high speed internet within a company that is focused on advertising proved a very tough sell. There is a difference in priorities, culture and, ultimately, moneymaking objectives. Being a separate company increases transparency and allows it to develop its technology and products in its own way.<\/p>\n
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Three other possibilities exist for what triggered the creation of the new structure. The first is that it is simply another way of reducing tax and the second that it is the imposition of financial discipline by Google\u2019s CFO Ruth Porat.<\/p>\n
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The third reason is based on rumours that Twitter was desperate to hire Sundar Pinchai as its new CEO and that Google decided to clear the path so that he could be CEO of Google.<\/p>\n
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The last reason seems a little far fetched, given that being the CEO of Twitter wouldn\u2019t be a particularly attractive proposition given its difficulties in turning a profit.<\/p>\n
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