Larry Page, the chief executive of Google's parent company, announced his resignation on Tuesday, and Google's chief executive, Sundel? Sundar Pichai will take over the post of CEO At the same time, Google's other co-founder, Sergey Brin, the president of Alphabet, also saidGoogle's founder has already accepted Warren? Buffett (Warren Buffett) 's non-intrusive management style has been trying to turn his company into Berkshire Hathaway in the technology world for years. The decision of both founders to resign on Tuesday ended all these efforts.
Page and Brin founded Alphabet, in 2015 to give themselves more time to invest in start-up technology companies and handed over responsibility for managing Google to Sandel Pichai (Sundar Pichai). The model was inspired by Buffett's approach. The Wall Street mogul allocates capital to different companies and leaves the chief executives of independent companies to decide how to operate.
Google's founders effectively removed this structure by appointing Pichai as CEO of Google and alphabet. Pichaiben has been busy running Google's massive digital advertising business, dealing with tough issues such as antitrust investigations and employee protests. Now, many projects like autopilot, health care, digital city, delivery UAV and Internet balloon have also become his problems.
For many people in the company, the purpose and structure of alphabet has never really been clear since its establishment. Google contributes more than 99% of alphabet's revenue. A former Google executive said that putting Google's head in charge of alphabet could raise questions about the company's overall purpose. Another former Google executive said the change would mean less pressure on Mr. Pichai.
From a financial point of view, alphabet shows investors that the company has not invested too much money in the ambitious "moon landing" project, but also highlights the huge profitability of Google's main business.
But in terms of operation, the company's structure has been in near continuous turmoil, and it has been difficult to create a new business independent of Google. In 2018, the company's "other bets," including businesses such as waymo and verily, lost $3.4 billion, compared with a loss of nearly $1 billion last quarter.
Nest, a smart device maker that started as an independent alphabet subsidiary, was incorporated into Google's hardware division last year. Pichai also included many of deepmind's AI projects in Google management. The Internet security project, which made a high-profile public debut last year and became an independent alphabet subsidiary, was incorporated into Google's cloud computing division in June. Fiber, once a high-profile optical communication service, is no longer expanding.
Some current and former Google employees believe that Pichai's promotion shows that alphabet's start-up business will gain stronger corporate governance. Page and Brin are respected for their visionary technical ideas, but their management skills are not very good.Vineet Butch, a partner at Firestone Ventures, a venture capital firm, has served as a product-management director for more than eight years until the end of 2018. 职.他表示
Butch takes nest as an example to show how Pichai will run alphabet and Google. The smart home device maker was initially hailed as a model for alphabet's independent business, with its own CEO, marketing department and even email address. But it was difficult for the company to release products on time, so the CEO was forced to leave. "When nest was incorporated into Google, the speed of delivery and the viability of these products in the market increased," said Butch
The fact that Mr. Page and Alphabet's senior lawyer, David Drummond, are active in other bets, has been avoiding conversations with shareholders, which has once again puzzled Wall Street. Desmond will now report to the head of Alphabet.
"Things are much simpler in the long run: Sandel is the only sheriff in town," analysts at evercore ISI, an investment bank, wrote in a report
"New sheriff" is eager to play down his important role. "I want to make it clear that this change will not affect alphabet's corporate structure or our daily work," pichay wrote in an email to employees