Alphabet soup?

Google surprised the world on August 10 by announcing that a holding company, to be called Alphabet, had been established. CEO Larry Page described Alphabet as “mostly a collection of companies” and “companies that are pretty far afield of our main Internet products” would be contained in Alphabet instead of being part of Google. He then went on to describe some health-related companies as examples. Other research and investments operations, Google X, Google Ventures and Google Capital will now fall under the Alphabet umbrella.

As a reorganized operating structure, this all makes sense and would not be of interest for this blog. Their selection of name is of interest, and it is puzzling.

What is not clear is why they decided not to brand the holding company Google Group, Google Holdings, or something else along these lines. Why is it necessary, as it is suggested, that Google Ventures will be recast as Alphabet Ventures?

Among the Google Venture portfolio are companies with names such as 23andMe, Nest, Uber, Jet and Slack. Not one of these ventures, as well as Google Capital companies (Survey Monkey, Credit Karma, among others), is branded with Google. All these companies have their own unique brands and fall under either the Capital or Venture umbrella. This generally insulates Google Inc. from any negative fallout should one of these emerging enterprises fail.

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“Google’s mission is to organize the world’s information and make it universally accessible and useful.”

Is Google a web site search engine or a knowledge-based company? One can make a compelling case that it is the latter. As such, all of the current ventures – from genetics company 23andMe to Credit Karma to Uber – can roughly be described as being consistent with the Google brand.

On the other hand, if Larry Page and Sergey Brin have an abiding interest in wrestling and intend to acquire World Wrestling Entertainment, Inc., then having a different name for the holding company is totally understandable.

More realistically, if their intention is to continue to invest/acquire/start innovative health-based companies, as well as become involved with companies that expand the use of the internet and other communications tools in how people live, work and play, then creating a separate name for the holding company will only result in diluting the power of the Google brand. What they will have is alphabet soup that will require cleaning up in a few years time.
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And to make things interesting, Google introduced its new logo just yesterday. More about this later.
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