Relearning The Alphabet: A Lesson on Company Life Cycles

Get a different angle to Google’s reorganization into Alphabet. This article sheds a light on the bigger pattern of mature companies extending the company lifecycle by investing in high risk early stage companies, showing the drivers behind this trend.

Is Google’s restructuring a sign that the company is the new conglomerate? Or a venture fund? Neither of it. The restructuring is just a manifestation of a larger trend and it includes such giants as Amazon and Facebook.

There has been a lot of talk about Google’s recent surprise reorganization and rebranding of its holding company to Alphabet. On the one side, their mature advertising and internet businesses such as Google, YouTube and Google Maps will still run under the Google brand. On the other side, the younger portfolio companies such as Nest, Calico, Fiber, Google Ventures, and Google X will be independent from the ‘grown up’ Google. Both of these groups makes up the Alphabet. Although surprising in some way, this was a logical decision by Google’s leadership.

image credits: August_0802 & bikeriderlondon /Shutterstock

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