Logo redesign
Google makes subtle changes to its logo, including a multi-colored mic for voice commands and a four-color “G” logo which replaces the lowercase “g” logo.
Once upon a time, Google was one destination that you reached from one device: a desktop PC. These days, people interact with Google products across many different platforms, apps and devices—sometimes all in a single day.
Alphabet founded
Page and Brin found Alphabet to hold all Google-related businesses. Alphabet
habet Inc will replace Google as the publicly-traded entity. All shares of Google will automatically convert into the same number of shares of Alphabet — with the same rights. Page:
Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
All of the businesses that fall under Alphabet will have their own individual chief executives. Page says that with the new structure, the company is planning to implement segment reporting for its fourth quarter earnings results. As such, Google’s financials will be provided separately from other Alphabet’s businesses. Page:
We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products–the whole point is that Alphabet companies should have independence and develop their own brands.
Launches Sidewalk Labs
Google creates a new start-up company called Sidewalk Labs. Its purpose is to use technology and innovation to improve urban life. Page:
Sidewalk will focus on improving city life for everyone by developing and incubating urban technologies to address issues like cost of living, efficient transportation and energy usage
First Quarter EPS below estimates
For the sixth straight quarter, Google’s earnings fell below analyst estimates, with earnings per share of $6.57 against analysts expectation of $6.61. But investors were pleased with a healthy bump in the number of paid clicks on Google ads and comments from executives about the growing popularity of ads on YouTube, sending shares up 4% to $567.45 in after-hours trading.
Acquires Songza
Google acquires Songza, a service that creates soundtracks tailored to people’s changing moods, and plans to blend Songza’s technology into its own music streaming service. This service will cost $10 per month. Financial terms of the deal are not disclosed. Songza:
We can’t think of a better company to join in our quest to provide the perfect soundtrack for everything you do.
Google buys YouTube
Google has recently purchased a majority (more than 50%) of YouTube for $1.65 billion. All 67 of YouTube’s employees kept their positions. Chad Hurley, co-founder of YouTube, says:
I’m confident that with this partnership we will have the flexibility and resources needed to pursue our goal of building the next-generation platform for serving media worldwide.
