Google reorganizing and Sundar Pichai will become new CEO

In case you missed it, Google announced a totally unexpected development today. They announced that it had formed a new holding company, Alphabet. A new conglomerate that is absorbing Google itself but also includes Fiber, Ventures, Google X, Nest and more. I think it totally makes sense for a few reasons, the market as it closed today, seems to agree, as Google’s stock spike 6%.
alphabet new logo? abc.xyz
I think the main reason would be to play under the radar, without being tied to Google brand, to buy larger set of businesses, to play safe given the recent antitrust case and to let Google cash cow be highly profitable even if the moonshot projects fail to turn a profit for years end. It also means Larry and Sergey would work more closely at a higher level as they removed themselves from daily Google operations.
The abc's of Google
Source: WSJ
Also – and this is the interesting part – they are turning to Sundar Pichai, who will be the new CEO. The former Chrome OS and Android chief. It will be interesting to see how they handle the transition and the importance of mobile to serve better Google’s core mission.

Google gobbles up Motorola Mobility for Mobile Patents

This morning Google anounced that they just bought Motorola Mobility for $12.5 billion. With all the latest Mobile patents war between Apple, Microsoft and Google, they were obviously chasing the strong portfolio of more than 17000 patents.

Microsoft was interested in acquiring Motorola’s patent portfolio that would have allowed it to torpedo Android even further. The possibility of that deal brought Google to the negotiation table, resulting in the blockbuster sale. OM Malik on GigaOM

Pissed that they lost the last fight over Nortel’s patents, Google had to do something. They were probably looking to secure their Android platform from rival, which means more control over the “open” platform (don’t be fool). They will be able to deploy Android update much faster or at least to put pressure on these OEMs (HTC, Samsung) not fast enough. They can defend Android much better with that acquisition, as MG Siegler on Techcrunch wrote:

What happens when the iPhone 5 launches and everyone wants it? That includes many people currently using Android phones. After a few months of this, Google grows frustrated that none of their OEMs can release a device that matches the build-quality that Apple puts out there. But wait, they now have their own company they can at the very least use to apply to pressure the other OEMs to force them to do better work!

More on that over RWW and Techcrunch