Google hit the reset button today, launching a new parent company called Alphabet under which its search, Android and investment assets will sit.
Larry Page, who will now be CEO of Alphabet, explained in the blog post announcing the new structure why the name Alphabet was selected.
“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 added that the goal is not to be a big consumer brand with a bunch of related products. “The whole point is that Alphabet companies should have independence and develop their own brands,” he wrote.
But it looks like Reddit predicted this would happen a year ago. A forum on the site has an A to Z of all things Google called “The New Age Alphabet”.
You can see it in the Tweet below.
— Bullion Baron (@BullionBaron) August 11, 2015
Insiders at the company say the restructure isn’t a surprise and has been considered for the past four years.
Shareholders will get one Alphabet share for every Google share they previously owned.
Business Insider Emails & Alerts
Site highlights each day to your inbox.