In a classic case of the more things change the more they remain the same, Google has announced the launch of a new holding company called Alphabet.The announcement was made on Monday by Larry Page, co-founder and chief executive of Google. In his blog post, Page said according to the New York Times “that he was creating a new company named Alphabet that he would run along with Sergey Brin, the other co-founder of Google. Alphabet is to act as a parent holding company, with several other companies operating under the structure, including Google, a company focused on health efforts called Life Sciences, and a company focused on longevity called Calico.
Under this structure, Google will be run by Sundar Pichai as chief executive; Mr. Pichai has been Google’s senior vice president in charge of products.
“For Sergey and me this is a very exciting new chapter in the life of Google — the birth of Alphabet,” wrote Mr. Page in the blog post. “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.”
The structure is reminiscent of that of Berkshire Hathaway, which is Warren Buffett’s industrial empire. Mr. Buffett has built Berkshire Hathaway into a giant conglomerate that includes railroads and Fruit of the Loom underwear.