Yesterday, Sergey and Larry announced that Sundar Pichai would be Google's third CEO and that the company will become a wholly-owned subsidiary of a new entity known as Alphabet. Larry and Sergey will become CEO and president
of the new holding company which will incorporate Google and its other businesses. Under the new structure, Alphabet will become the publicly-traded company with all shares retaining the same rights and value as current Google shares.
Google will retain core businesses such as YouTube, Android, Maps, Mail, Search, and Ads. Calico (a project to extend human lifespan), Google X lab, Nest, Fiber, Ventures, and Capital will become subsidiaries of Alphabet with their own CEO's.
Google has changed a lot over the last decade. Larry and Sergey admit that self-driving cars and delivery drones "aren't very related" to its core business. Furthermore, the relationship between Google and Google Ventures and Capital has always been complicated. For example, Google Ventures invested $238 million in Uber in August 2013 (its largest deal ever) and yet Google (via Waze) recently launched rival ridesharing company RideWith in Herzliya, Tel Aviv and Ra’anana. More recently, despite Google's expansion of Google Shopping and the Buy Button, Google Ventures invested in member's only retail website Jet's $140 million venture round in February. By reorganizing under Alphabet and providing clarity and more granular reporting about these independent subsidiaries, the street will be more forgiving when Ventures and Capital choose to invest in or buy [Twitter cough cough], sell, and spin off companies in the future.
Last week the S&P Media Index lost 8.3 percent (approximately $53.7 billion of value) in just three days. During that time, shares of Viacom ($VIA.B) lost 20 percent, 21CF ($FOX) and Discovery Networks ($DISCA) lost 11 percent, Disney ($DIS) took a 9 percent hit, and even CBS ($CBS) dropped 6 percent.
CNN's Nina dos Santos speaks with tech guru Shelly Palmer about Tesla's warning it will deliver fewer cars this year and Facebook's challenge to Periscope. Airdate: August 6, 2015.
The 8th Annual Media Technology Summit will take place September 9-10 in Las Vegas during CTIA Super Mobility. It is a meticulously curated gathering of global trailblazers, innovators and investors.
With over 35,000 attendees, 1100 exhibits and 275,000 square feet of interactive displays, navigating the show floor can be challenging. We design our floor tours so that you see the best of the best of CTIA in an efficient, relevant, and meaningful way.