Where X remains to be defined after the “waters” settle (and more pertinent opinions appear – yes, it is slightly amusing that all analysts have tons of opinions now, but none predicted this move ).
Anyway. Beyond beautiful words and aspirational statements, there is always a rational and colder calculations (business and/or politics).
But, let’s start filter some explanations:
“Over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant. Our company is operating well today, but we think we can make it cleaner and more accountable”,explains Larry Page.
This way, the businesses that remain part of Google are:
Separately within Alphabet, as distinct companies, there will be:
And Page is thinking at them and sends them a clear signal:
“With this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole.”
(Excuse my clumsy comparison, but I just remembered involuntarily: when I launched, in 2009, Q2M I was thinking to a name to cover the new digital “alphabet”, where qwerty keyboard change a paradigm and A became Q and Z became M. A “solutions from A to Z”, said in another way. An ok name for a digital services company from the end of the world).
That is why I can imagine that, when you own the internet and want more and more, the psychologic mechanism though which you decide to choose an URL likeabc.xyzis triggered on its own (to some’s fortune).
Sincerely, the ABC.XYZ domain seems to me more suited than the Alphabet brand: if not for other reason, but only 26 letters – even if “G is for Google” -, don’t seem enough to me for the ambitions of those who created maybe the most spectacular business in the modern history.
As a stop-gap conclusion (until other info appears), it is clear Brin and Page wish to play future of the internet and, maybe, even humanity’s (somewhat) free from the political pressures and from investors’ ones.
It’s therefore normal to try to separate the consolidate present from the future not always clear (but, exactly for that reason, much sexier)
PS Some funny reactionson Twitter.