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Google Is Now Officially Alphabet Inc.’s Subsidiary

October 2, 2015 - Written By Fernando Bonilla

Google’s transition to Alphabet has officially gone into effect. The change is active after the merger was filed on the United States Securities and Exchange Commission. The company’s plan was announced earlier. U.S. stock markets closed earlier today, after which Alphabet took over Google’s stocks. These stocks will remain largely the same when the market open again for the next session. Class A and C shares under Google will not change in any significant way, other than their newfound affiliation with Alphabet. In addition, Google’s ticker symbol is not expected to experience any sort of modification. It seems Google’s current investors are welcoming the restructuring, expressing that Alphabet may improve the company’s transparency.

It’s also anticipated that Alphabet will allow Google to focus its attention on both its primary businesses and secondary moon-shot ideas while striking a balance between them. Google is known for its interest in both traditional revenue sources, such as its popular search engine, but also for its radical ideas that need a different type of management. Alphabet serves as the company’s solution for better handling of all its services, either conventional or untested. Google still exists, as do all of its services. Android users shouldn’t expect to see any significant shift in the software or products offered to them as a direct result of Alphabet. The new company is more of an internal effort than something that would affect customers directly. In fact, some have called the metamorphosis more of a formality.

However, the company is now considered a subsidiary of the newly formed Alphabet Inc., which was announced as part of a method to improve Google’s organization and efficiency. Alphabet will handle quarterly reports by publicizing appropriate information from two separate units, one of them being Google and the other any additional businesses under Alphabet. Third quarter reports won’t be representative of this new procedure. Google’s transformation will be accompanied by a change in upper-level management though the board of directors will retain the members it had under Google. Alphabet’s chief executive officer is Larry Page. Page has a long history with Google, starting with his role as its co-founder. He also announced Google’s plan on an earlier blog post. Google will now be run by Sundar Pichai.

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