Alphabet Inc.

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Alphabet Inc.
Traded as
ISIN US02079K3059
Industry Conglomerate
Founded October 2, 2015; 2 years ago (2015-10-02)
Headquarters Googleplex, Mountain View, California, U.S.
Area served
Key people
Revenue Increase US$90.27 billion[1] (2016)
Increase US$23.71 billion[1] (2016)
Profit Increase US$19.47 billion[1] (2016)
Total assets Increase US$167.49 billion[1] (2016)
Total equity Increase US$139.04 billion[1] (2016)
Number of employees
78,101[2] (2017)

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a corporate restructuring of Google on October 2, 2015[3] and became the parent company of Google and several former Google subsidiaries.[4][5][6][7][8] The two founders of Google assumed executive roles in the new company, with Larry Page serving as CEO and Sergey Brin as President.[9] It has over 75,606 employees as of July 2017.[10]

Alphabet's portfolio encompasses several industries, including technology, life sciences, investment capital, and research. Some of its subsidiaries include Google, Calico, GV, CapitalG, Verily, Waymo, X, Nest Labs and Google Fiber. Some of the subsidiaries of Alphabet have altered their names since leaving Google and becoming part of the larger parent company—Google Ventures becoming GV, Google Life Sciences becoming Verily and Google X becoming just X. Following the restructuring, Page became CEO of Alphabet while Sundar Pichai took his position as CEO of Google.[4][5] Shares of Google's stock have been converted into Alphabet stock, which trade under Google's former ticker symbols of "GOOG" and "GOOGL".

The establishment of Alphabet was prompted by a desire to make the core Google Internet services business "cleaner and more accountable" while allowing greater autonomy to group companies that operate in businesses other than Internet services.[5][11]


On August 10, 2015, Google Inc. announced plans to create a new public holding company, Alphabet Inc. Google CEO Larry Page made this announcement in a blog post on Google's official blog.[5] Alphabet would be created to restructure Google by moving subsidiaries from Google to Alphabet, narrowing Google's scope. The company would consist of Google as well as other businesses including X, CapitalG, and GV.[9][12][13] Sundar Pichai, Product Chief, became the new CEO of Google, replacing Larry Page.[14][15]

In his announcement, Page described the planned holding company as follows:[5][16]

Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. […] Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related.

As well as explaining the origin of the company's name:

We liked the name Alphabet because it means a collection of letters that represent language, one of humanity's most important innovations, and is the core of how we index with Google search! We also like that it means alpha‑bet (Alpha is investment return above benchmark), which we strive for!

Page says the motivation behind the reorganization is to make Google "cleaner and more accountable." He also said he wanted to improve "the transparency and oversight of what we’re doing," and to allow greater control of unrelated companies.[5][11]

On February 1, 2016, Alphabet Inc. surpassed Apple to become the world's most valuable publicly traded company until February 3, 2016, when Apple surged back over Alphabet to retake the position. Experts cited Apple's lack of innovation as well as increasing Chinese competition as reasons for the poor performance.[17][18]


Alphabet has chosen the domain with the .xyz top-level domain (TLD), which was introduced in 2014. It does not own the domain, which is owned by a fleet management division of BMW. BMW has said that it is "necessary to examine the legal trademark implications" of the proposals. It also does not own, which is the promoted domain of the Disney-owned American Broadcasting Company (though redirects to a subdomain of, through which most of Disney's sites are hosted).[19][20]

The website features an Easter egg in the paragraph where Larry Page writes, "Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure." The period after "drone delivery effort" is a hyperlink to "", a reference to the television series Silicon Valley.[21]


Alphabet's largest subsidiary is Google, other subsidiaries being Calico, DeepMind, GV, CapitalG, X, Google Fiber, Nest Labs, Jigsaw, Sidewalk Labs, Verily and Waymo. As of September 1, 2017, their equity are held by a subsidiary known as XXVI Holdings, Inc. (referring to the Roman numeral of 26, the number of letters in the alphabet), so that they can be valued and legally separated from Google. At the same time, it was announced that Google will be reorganized as a limited liability company, Google LLC.[22]

While many companies or divisions formerly a part of Google became subsidiaries of Alphabet, Google remains the umbrella company for Alphabet's Internet-related businesses. These include many of the most widely used products and services long associated with Google, such as the Android mobile operating system, YouTube, LLC, and Google Search, which remain direct components of Google.[9][23]

Proposed growth[edit]

Eric Schmidt said at an Internet Association event that there may eventually be more than 26 Alphabet subsidiaries. He also said that he was currently meeting with the CEOs of the current and proposed Alphabet subsidiaries. He said, "You'll see a lot coming."[24]

Restructuring process[edit]

Google Inc. was restructured as a subsidiary directly owned by Alphabet. The roles of these two companies – one as the owner and the other as the subsidiary – was then reversed in a two-step switch. First, a dummy subsidiary of Alphabet was created. Then Google merged with that dummy subsidiary while converting Google stock to Alphabet stock. Under Delaware law, a holding company reorganization such as this can be done without a vote of shareholders, as this reorganization was.[25]

The restructuring process was completed on October 2, 2015.[3] Alphabet retains Google Inc.'s stock price history and continues to trade under Google Inc.'s former ticker symbols "GOOG" and "GOOGL"; both classes of stock are components of major stock market indices such as the S&P 500 and NASDAQ-100.[26]


Alphabet Inc. is suing Uber over technology similar to Alphabet's proprietary self-driving car technology. Alphabet's autonomous vehicle technology has been under development for a decade by Alphabet's Waymo (self-driving vehicle division). The proprietary technology is related to 14,000 documents believed to have been downloaded and stolen by a former Waymo engineer, subsequently employed by Uber.[27][28]

Investments and Acquisitions[edit]


In January 2017, Alphabet Inc. led a Series B round of $15 million along with Sequoia India in education startup Cuemath.[29]

In October 2017, Alphabet Inc. led a $1 billion round in Lyft.[30]

In November 2017, Alphabet Inc. led a Series A round of $70 million along with Andreessen Horowitz and 20th Century Fox in music startup United Masters, founded by Steve Stoute.[31]


On January 13, 2018, Alphabet Inc. acquired smartphone technology startup Redux, which specialized in turning smartphone screens into speakers. Spectators claimed that the technology would somehow be integrated into Google's smartphone Pixel.[32]


  1. ^ a b c d e "Alphabet Inc. 2015 Annual Report Form (10-K)". EDGAR. United States Securities and Exchange Commission. February 27, 2016. Retrieved December 21, 2015. 
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  3. ^ a b "SEC Filing (Form 8-K) by Alphabet Inc". October 2, 2015. 
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  11. ^ a b Metz, Cade. "A New Company Called Alphabet Now Owns Google". Wired. Condé Nast. Retrieved August 13, 2015. 
  12. ^ Greenberg, Julia (August 10, 2015). "What Google, I Mean Alphabet, Looks Like Now". Wired. Condé Nast. Retrieved August 10, 2015. 
  13. ^ "What is Alphabet, Google's new company?". Business Insider. Retrieved August 10, 2015. 
  14. ^ Chen, Angela (August 10, 2015). "Google Creates Parent Company Called Alphabet in Restructuring". Wall Street Journal. Retrieved August 10, 2015. 
  15. ^ Conor Dougherty (August 10, 2015), Google to Reorganize in Move to Keep Its Lead as an Innovator, New York Times, retrieved August 10, 2015 
  16. ^ "Google's Larry Page explains the new Alphabet – CNET". CNET. Retrieved September 19, 2015. 
  17. ^ Levy, Ari. "Google passes Apple as most valuable company". CNBC. NBCUniversal. Retrieved February 1, 2016. 
  18. ^ Krantz, Matt. "Apple not going down easy as it overtakes Google parent Alphabet". USA Today. USA Today. Retrieved February 3, 2016. 
  19. ^ Davidson, Lauren. "Google unveils Alphabet... but that's already trademarked by BMW". Daily Telegraph. Retrieved August 12, 2015. 
  20. ^ Lardinois, Frederic (August 10, 2015). "Google Is Now Alphabet, But It Doesn't Own". TechCrunch. AOL Inc. Retrieved August 11, 2015. 
  21. ^ David Stubbs (August 12, 2015). "Google's Easter egg proves Silicon Valley is tech's own Spinal Tap". The Guardian. Retrieved February 28, 2016. 
  22. ^ "Alphabet Finishes Reorganization With New XXVI Company". 2017-09-01. Retrieved 2017-09-02. 
  23. ^ "Google's new Alphabet, from A to Z (pictures) – CNET". CNET. Retrieved August 12, 2015. 
  24. ^ Bergen, Mark. "Eric Schmidt: Get Ready for 'a Lot' More Alphabet Companies". Re/code. Re/code. Retrieved October 19, 2015. 
  25. ^ "Google Inc. filing with the SEC, Form 8-K". United States Securities and Exchange Commission. August 10, 2015. Retrieved August 11, 2015. 
  26. ^ "GOOGL : Summary for Alphabet Inc. - Yahoo Finance". Retrieved 2017-12-04. 
  27. ^ Sage, Alexandria (May 30, 2017). "Uber fires self-driving car chief at center of court case". Reuters. Retrieved May 30, 2017. 
  28. ^ Mike Isaac And Daisuke Wakabayashi (May 30, 2017). "Uber Fires Former Google Engineer at Heart of Self-Driving Dispute". New York Times. Retrieved May 30, 2017. 
  29. ^ "Google's CapitalG invests in edu startup Cuemath". The Economic Times. 2017. Retrieved 2017-12-04. 
  30. ^ "Alphabet Unit Leads $1 Billion Investment in Lyft". 2017-10-19. Retrieved 2017-12-24. 
  31. ^ Constine, Josh. "With $70M from Alphabet, UnitedMasters replaces record labels". TechCrunch. Retrieved 2017-12-04. 
  32. ^ "Alphabet Inc (GOOGL) Acquires Smartphone Speaker Startup Redux". Retrieved 2018-01-14. 

External links[edit]