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What you need to know about Alphabet - the new corporation of the founders of Google

The founders of Google Sergey Brin and Larry Page on August 10 introduced the new company Alphabet, which will combine all the projects that work on Google-from the Internet post to self-governing machines. From now on, Google himself is only one of the companies included in Alphabet; It will lose many innovative projects that will be highlighted in separate structures within the holding. "Medusa" says what is known about Alphabet - and why Brin and Page is a new company, if the old did a good job.

Alphabet will completely replace Google in its modern form. One Google action is equal to one promotion of the new holding, so nothing will actually change for shareholders. Everything will remain unchanged for ordinary people, at least at the first time: they will be able to continue to use the search for Google, Gmail mail, YouTube video service and Chrome browser.

Sergey Brin and Larry Page are no longer Google leaders. The largest world search engine will be headed by the Sundar of Pichai, the top manager of Google, who once led the development of Chrome and the Google Drive project. Pichai has been working in the company since 2004, until the appointment of the executive director of Google (he replaced Larry Page in this position), the 43-year-old specialist was the director of products. The company loves and respects him; According to Page, Pichai often says the same things that the founder of Google would say. Brin becomes the president of Alphabet, Page - the Executive Director, they will determine the strategic planning of the work of the entire holding, appoint managers for individual companies and engage in many other things.

Google as part of Alphabet will become an ordinary Internet company that includes a search service, YouTube video service, Google cards, all related to the Android business, as well as the sale of advertising. The search engine will lose the advanced unit for the development of various experimental Google X projects, many other research groups that are not directly related to the search, advertising and the Internet will come out of its structure. The Google Ventures and Capital investment projects from the Internet business will also become structures. The biotechnical company CALICO, which specializes in developments in the field of continuing the life of a person, will also become part of Alphabet, as well as the decisions developer for the Smart House Nest.

Alphabet, most likely, will never become as famous as Google. The main task of the holding is to create a climate in order for subsidiaries to develop efficiently and independently from each other without engaging in internal competition. The new structure will make it possible to combine innovative developments and the main business, the main task of which is profitability. According to The New York Times, Berkshire Hathaway holding of one of the most successful investors of Warren Buffette is similarly arranged; In it, companies from completely different industries get along and do not interfere with each other. In fact, Page and Brin left in Google only that which brings profit, and all other projects were taken to individual companies, which will have their own tasks, their leadership and vision of the future.

Starting from the fourth quarter of 2015, Alphabet will separately report on the financial results of Google - and separately talk about all the work of the holding as a whole; Thus, investors will be able to understand how successfully the main business of the company is without discounts on innovation and research. The structure of the holding should reassure investors who recently feared that Google spends too much on projects with foggy prospects.