The co-founders of Google are leaving?
The Co-founders of Google (and Alphabet), Larry Page (the CEO of Alphabet) and Sergey Brin’s (President of Alphabet) stepped down from their positions on Tuesday.
According to some analysts, the expectation is that the transition will not impact the company’s daily operations. Because of the CEO of Google, Sundar Pichai has largely been the face of the company since 2015. So their (Page and Brian) departure doesn’t come up as much of a surprise. The sad thing is that the transition comes at a time when Google is at the center of antitrust concerns and is under increasing scrutiny from lawmakers and privacy advocates over its business practices and the way it handles and collects users’ data. Page and Brian are leaving, doesn’t mean they won’t ever look at what they build. Infect they will remain in touch with the company as co-founders, shareholders, and Board members.
Since Pichai promoted to CEO, Page and Brian stop being in the spotlight, and almost all the responsibility went over Pichai’s shoulder. He was the one to attend the congressional hearing and made appearances at the company town hall.
Pichai has been tapped to take over as the chief executive of Alphabet ever since he became the CEO of Google. Page had been the CEO of Google but changed his place to the CEO of the parent company Alphabet when Pichai was promoted to the new CEO of Google.
“The promotion of Sundar, likely acts to combine power at the top of the world’s third-largest company, which prior to this point had been characterized by a degree of fragmentation in organizational structure, if not strategic vision,” says an Evercore ISI report was written by analysts.
“Although the handoff represents a milestone for GOOG, we also think the appointment of Pichai is a formality for the business,” a team of analysts at Cowen led by John Blackledge wrote in a December 3 research note.
“Larry and Sergey stepping down from their management roles do not come as a complete surprise, and we do not expect any major change in how Alphabet is run,” a team of J.P. Morgan analysts led by Doug Anmuth.
“As Alphabet has now been well-established, and Google and the Other Bets are operating effectively as independent companies, it’s the natural time to clarify our management structure,” Page and Brin wrote in a blog post announcing the change. “We’ve been never one of those who hold on to management roles when we think there’s a better way to run the company. And Alphabet and Google now no longer need two CEOs and a President.”
Page and Brian will still have control over voting shares of the company. Page holds about 5.8% shares, Brian holds about 5.6% shares, whereas Pachai holds about 0.1% share. The advertising business run by Google shows the signs of slowing down. The ad revenue for the first quarter of 2019 is lower than the third quarter of 2018. It’s also has struggled to generate significant revenue in hardware, although it’s cloud business is still growing.
What are your thoughts about this? Should they have stayed or left? Please share your beliefs in the given section below.