Alphabet Inc. facts for kids
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Googleplex, home to Alphabet Inc., in Mountain View, California
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Trade name
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Alphabet |
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| Public | |
| Industry | Conglomerate |
| Founded | October 2, 2015 |
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| Headquarters | Googleplex,
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U.S.
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Area served
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Worldwide |
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Key people
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| Products |
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| Revenue |  US$282.8 billion (2022) |
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Operating income
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 US$74.84 billion (2022) |
| US$59.97 billion (2022) |
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| Total assets | US$365.3 billion (2022) |
| Total equity | US$256.1 billion (2022) |
| Owners |
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Number of employees
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181,798 (June 2023) |
| Subsidiaries | |
Alphabet Inc. is an American multinational technology conglomerate holding company headquartered in Mountain View, California. Alphabet is the world's third-largest technology company by revenue and one of the world's most valuable companies. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. It is considered one of the Big Five American information technology companies, alongside Amazon, Apple, Meta, and Microsoft.
The establishment of Alphabet Inc. was prompted by a desire to make the core Google business "cleaner and more accountable" while allowing greater autonomy to group companies that operate in businesses other than Internet services. Founders Larry Page and Sergey Brin announced their resignation from their executive posts in December 2019, with the CEO role to be filled by Sundar Pichai, also the CEO of Google. Page and Brin remain employees, board members, and controlling shareholders of Alphabet Inc.
History
On August 10, 2015, Google announced plans to create a new public holding company, Alphabet Inc. Google co-founder and CEO Larry Page made this announcement in a blog post on Google's official blog. Alphabet was created to restructure Google by moving subsidiaries from Google to Alphabet, thus narrowing Google's scope. The new holding company would consist of Google as well as other businesses including X Development, Calico, Nest, Verily, Fiber, Makani, CapitalG, and GV. Sundar Pichai, the company's Product Chief, became the new chief executive officer of Google, replacing Page, who transitioned to the role of running Alphabet, along with co-founder Sergey Brin.
In his announcement, Page stated that the planned holding company would allow for "more management scale, as we can run things independently that aren't very related" to Google. He clarified that, as a result of the new holding company, Google would be "a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead". He further stated that the motivation behind the reorganization is to make Google "cleaner and more accountable and better" and that that he wanted to improve "the transparency and oversight of what we're doing".
Former executive Eric Schmidt (now Technical Advisor) revealed in the conference in 2017 the inspiration for this structure came from Warren Buffett and his management structure of Berkshire Hathaway a decade ago. Schmidt said he encouraged Page and Brin to meet with Buffett in Omaha to see how Berkshire Hathaway was a holding company made of subsidiaries with strong CEOs who were trusted to run their businesses.
Before it became a subsidiary of Alphabet, Google Inc. was first structured as the owner of Alphabet. The roles were reversed after a placeholder subsidiary was created for the ownership of Alphabet, at which point the newly formed subsidiary was merged with Google. Google's stock was then converted to Alphabet's stock. Under the Delaware General Corporation Law (where Alphabet is incorporated), a holding company reorganization such as this can be done without a vote of shareholders, as this reorganization was. The restructuring process was completed on October 2, 2015. Alphabet retains Google Inc.'s stock price history and continues to trade under Google Inc.'s former ticker symbols "GOOG" and "GOOGL"; both classes of stock are components of major stock market indices such as the S&P 500 and NASDAQ-100.
On December 3, 2019, Page and Brin jointly announced that they would step down from their respective roles, remaining as employees and still the majority vote on the board of directors. Sundar Pichai, the CEO of Google, assumed the CEO role at Alphabet while retaining the same at Google.
The firm completed a stock split in mid-2022.
See also
In Spanish: Alphabet para niños
