CaptureIn the latest groundbreaking news, Google is now owned by a company called Alphabet. Now, Google isn’t being bought out by Alphabet, but instead have the founders of Google creating Alphabet for one main purpose.

Reorganizing Google. They did this with a rather playful website.

We all know one thing – Google has a shit tonne of subsidiary companies and many more projects unrelated to search engines or ads. Take the self-driving car that was done in Google X for example – it’s amazing and don’t get me wrong, it doesn’t really to Google’s main core purpose anyway.

Same goes to some of the other subsidiaries like Google Ventures and Google Capital, Nest (the smart thermostat), Calico (biotech company) – they don’t really fit in with the Oxford English Dictionary’s definition of Google, and to separate out those subsidiaries out as an independent company.

That said, Alphabet Inc. is created to accommodate with Google’s new reorganized hierarchy of subsidiaries, and Alphabet Inc. will be the main company that “owns” all of Google and its subsidiaries (now companies). Indirectly, doing this means that Google’s subsidiaries are now under its own respective board of directors – that means companies like Google X can now fully focus on doing their own things without any concern of Google Inc.!

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Infographic from Wall Street Journal.

Think of it this way – instead of having like fifty flights of stairs to reach Floor S, every floor is now reachable in just one flight of stairs with the help of Alphabet Inc. Think of it like a “hierarchy flattener”.

With this hierarchy flattened, investments will work differently too. Investors showed that this is favourable, and Google’s shares jumped up 6.2%!

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The enthusiastic nanoelectronic engineer who found his way into simplifying the world of tech for everyone. Introverted, but noisy. Nice to meet you!