Google CEO Page speaks during a press announcement at Google headquarters in New York

Alphabet Finalizes Google Re-Organization into XXVI Holdings Inc.

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Way back in 2015, Google announced that it would be restructuring its company into multiple parts.  Which gave a new giant company, Alphabet, the power to oversee all of Google’s businesses.  The reason behind the move was to separate out some of Google’s “other” projects into their own entities, so that they would be valued separately for the core Google business.  Well, today, Alphabet has finally wrapped up the re-org with the invention of a new company.  Now, officially known as XXVI Holdings Inc. Which sounds kind of bland, when you consider that it’s overseeing Google.  Who is known for not being bland.

Name aside, XXVI Holdings will encompass all of those other project/companies including Waymo which comes up with self driving technology.  Also Verily, which specializes in digital health and medical devices.  Google is changing from a company to an LLC, because it’s now part of a holding company instead of a listed public company.

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That doesn’t mean that the Google products you have come to know and love will be changing.  Products like Gmail and YouTube, are, after all, Google’s bread and butter. A spokesperson for Alphabet has indicated that these changes are just a formality.  “We’re updating our corporate structure to implement the changes we announced with the creation of Alphabet in 2015”.  Which means that it shouldn’t affect shareholder control, operations or management.

Maybe I was too quick to judge the name.  For those of you who aren’t familiar with Roman numerals, XXVI is the number 26.  Which is the number of letters in the alphabet.  So I guess I spoke too soon on the name.

So what’s the reason for the re-org exactly?  It’s hard to say.  Alphabet is saying that it’s just business.  As in, this is something that they have to do in order to function.  Which makes sense.  I mean, a lot of companies go through these kinds of changes.  But usually there is a reason for it.  It seems, however, that this will be a more efficient way for Google to operate.  After all, Google seems to be doing a little bit of everything these days, don’t they? From self-driving cars, to health and medical technology to delivery drones.  What else are they doing?

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With so many projects on the go, it kind of makes sense that they would want to maximize efficiency.  When you make your organization more efficient, you also allow for the potential economic benefits.  So, this re org kind of makes sense if you ask me.

Google is a behemoth of a company.  I don’t mean that in a biblical sense, but in sheer size. They definitely have their fingers in more than one pot.  Which means they need some kind of focus in terms of organization.  By all accounts, it would seem that this re org is a way to maximize efficiency and help Google create and deliver the best possible products.  So don’t go reading too far into this, as it appears exactly as it seems.