Google Inc. What's In A Name Essay

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Google, Inc. (GOOGL), one of the most influential technology companies of all time, has recently announced a new corporate structure, and placed itself under a new holding company it created, called Alphabet, Inc.
What's In A Name?
Google cites a couple of reasons to explain its new name, Alphabet:
• Alphabet, to quote Google's official blog, "means a collection of letters that represent language, one of humanity's most important innovations". This new name syncs well with Google's innovative culture.
• "Alpha" in financial terms refers to an investment return above benchmark--which Google obviously strives for
But there's more to this name change (and corporate change), with a lot more business implications.
Here are the top 5 reasons why Google decided to re-brand itself under a new identity, and how this will change the company as we know it:
1.
…show more content…
A Message To Shareholders: The founders, Larry Page and Sergey Brin, had installed a corporate structure that kept them shielded from shareholders' pressure, and allowed them full freedom to try innovative ventures. But it also led to complains from shareholders about the lack of clarity regarding risky investments. There were no paybacks to shareholders in the form of dividends or buybacks. It made investors uneasy, and led to Google's stock prices going stagnant for a long while, despite the company's long-term value creation. With Alphabet, Google founders have conveyed their intentions to bring about more clarity in their style of work. This change will introduce much-needed transparency among the shareholders. There are precedents supporting this: In April 2015, Amazon.com Inc (AMZN) was successful in winning investors’ confidence when it started reporting its numbers separately for its Amazon Web Services (AWS) segment. The result was seen in an immediate price rise in its stock. (See related: How Does Google Make Its

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