Why did Google change to Alphabet Inc.

Why did Google change to Alphabet Inc.

At the end of 2015 Google Inc. made the surprise announcement that it would be restructuring the company. 

A new entity called Alphabet Inc. would take the existing Google Inc, and also control another operating company into which Google could place its long shots, the experimental products and companies its was developing that were not directly linked or influenced by its core search business. 

In doing this the company sought to contain the risk associated with these ventures.

As the company diversified over the last five years, it has faced increased criticism from investors regarding it loosing focus. Key to this was that Google failed to grasp the importance of social networks, arriving too late with Google+ in an industry that was dominated by LinkedIn and Facebook.

The new structure allows the company to continue developing its core search business, while also investing in those long shots.

The new company will continue to be listed on the NASDAQ under the symbol GOOGL


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