Yesterday, Google (GOOGL – Analyst Report) announced that it will be restructuring its business. Google's tickers won't change, but the name of the company will. The new hierarchy will place Alphabet as the parent company of Google. The goal of this restructuring is to separate core business components from the rest of the company's businesses.
The new Google will be smaller, but it will still be biggest component of Alphabet. Alphabet will be lead by current CEO Larry Page and current president Sergey Brin. The CEO of the new Google will be Sundar Pichai, who is held in high regard by Larry Page. The new Google will be focused on maps, apps, YouTube, Chrome, android, and search. Other components of Alphabet will include smaller companies such as Calico, Fiber, Nest, and Google Capital.
So what do investors think about all this? Some are skeptical, others appreciate the transparency which will be created, and others are enthralled by the $27 billion market cap boost Google received after the announcement. Here are some of the things that the optimists had to say about Alphabet:
Is #Alphabet a good idea for $GOOGL ?? I think it is. It's starting to sound a bit like #berkshirehathaway
— Mike Rochac (@mikerochac) August 11, 2015
Brilliant, brilliant strategy. $GOOG Berkshire Hathaway for this millenium. And the name (Alphabet) is perfect, too. http://t.co/689oGgiPdh
— David Miller (@AlpineBV_Miller) August 10, 2015
With Alphabet, Google's Larry Page is trying to be the Warren Buffett of tech. http://t.co/ctvJt5Xcvd $GOOG $GOOGL pic.twitter.com/4t7FxxbtlY
— Jeremy C. Owens (@jowens510) August 11, 2015
Cramer's Charitable Trust: Google's $GOOGL Alphabet Boosts Transparency http://t.co/3h4DdGmqmh
— Sebastian Silva (@AtSilvaStreet) August 11, 2015
@StockTwits $GOOGL smart move made, will raise the multiple. Get long and stay long #Alphabet.
— CaeX (@CaeXFinance) August 11, 2015
