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Google does a reshuffle

There was an interesting announcement from Google last evening, after the market closed: Google Announces Plans for New Operating Structure. The holding company is Alphabet, the website is abc.xyz. That is pretty cool, and the design is clean, G is for Google. Larry Page will be running Alphabet, Sergey Brin will be his partner, not much changes there. Sundar Pichai will run Google, he is highly regarded and got tweets of encouragement from the likes of Satya Nadella, the Microsoft CEO, Tim Cook, the Apple CEO and Google Chair, Eric Schmidt. He comes with a top pedigree, is only 43 years old, born in Chennai, I am just guessing that he is a huge MS Dhoni fan.

He, being Sundar Pichai, told his bosses (according to this Bloomberg article: Google's Sundar Pichai Is the Most Powerful Man in Mobile) that they had to get into browser wars, with Chrome. And he was prominent in making Android a success. All in all, what this move is supposed to represent is that we may see segmented earnings (and research and development spend too), rather than all of the advertising businesses lumped into one. Whilst there was not too much being fleshed out as of yet, it does provide more clarity.

And more importantly, reveals what we know all along, that whilst the company is currently heavily reliant on one revenue stream, there is plenty of ambitions to grow the business into many others. Hence Alpha-bet. And whilst G stands for Google, there are 25 other letters in the English alphabet. Does this mean that Google can only ever have 26 businesses in total? Perhaps, I remember reading that at any one time there were 40 things on the go there! The stock popped 6 percent plus in after-hours trade to above 700 Dollars in GOOGL, near an all time high. Lovely to be shareholders.


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