Netease technology news on December 4, according to foreign media reports, Google co-founder Larry Page announced on Tuesday that he would resign as CEO of alphabet. Sundar Pichai, Googles chief executive, will take over as CEO of the parent company.
Google co founders Larry Page (left) and Sergey Brin (right)
At the same time, Google co-founder Sergey Brin will also resign as president of alphabet, and the position will be removed. A few hours after the decision, alphabet shares rose 0.42%.
In their blog post announcing the decision, page and Brin wrote: alphabet is now firmly established, and Google and other bets to operate effectively as independent companies are the best time to simplify our management structure. When we think there is a better way to run a company, we never stick to the role of manager. Alphabet and Google no longer need two CEOs and one president.
Page served as chief executive in 2015 when Google restructured and formed its parent company, alphabet, to oversee other bets beyond its main business. Page has also previously served as chief executive of Google. Under the new structure, Pichai became Googles CEO after effectively operating most of its businesses, while page chose to stay in the background and focus on the overall situation. Pichai has previously led Android and chrome businesses.
Page and Brin still have control of the company. Page owns about 5.8% of alphabet, brin about 5.6% and Pichai about 0.1%, which ensures that the new CEO may still be restricted by the companys founder. Google said its voting structure would not be changed by the decision.
With Googles core digital advertising business showing signs of slowing, alphabet may need to rely more on other bets.. According to Google, advertising revenue slowed down in the first quarter of 2019, and profit in the third quarter fell year on year. While its cloud computing business is growing, the company is still trying to generate significant revenue in the hardware sector.
The following is the full text of page and Brins open letter:
The first founders letter that we attached to our S1 document in 2004 began with this: Google is not a traditional company, and we do not intend to be one of them. Throughout Googles evolution as a privately held company, we have managed Google in different ways. We have also highlighted a climate of creativity and challenge that helps us provide impartial, accurate and free access to information for those around the world who depend on us.
We believe that these core principles are still correct today. Google is not a traditional company and continues to make ambitious bets on new technologies. Creativity and challenges are still as constant as before, and are increasingly being applied in various fields, such as machine learning, energy efficiency and transportation. Nevertheless, Googles core service, which provides impartial, accurate and free access to information, remains at the heart of the company.
However, since we wrote our first founders letter, the company has grown and matured. Within Google, a variety of popular consumer services emerge after search, such as Google maps, Google photos and Youtube; a global device ecosystem supported by our Android and chrome platforms, including made by Google; Google cloud services, including GCP and gsuite; and, of course, basic technologies around machine learning, cloud computing and software engineering. Billions of people choose to make these products the core of their lives. Its an honor, a trust and a responsibility. Google will continue to work hard.
Structurally, Google was restructured into alphabet in 2015. As we said in our open letter when alphabet was founded in 2015, the purpose of alphabet is to achieve the prosperity of enterprises through strong leadership and independence.
Since we wrote this, hundreds of Phoenix residents are driving around the Waymo autopilot car. Wing has become the first UAV company to provide commercial delivery services to consumers in the United States. Verily and Calico are doing important work through cooperation with other health care companies. Our other bets have their own board of directors, independent directors and external investors.
These are just a few examples of how we have established technology companies within alphabet, as well as investment subsidiaries GV and capital g, which have supported hundreds of companies. Together with all of Googles services, this creates a colorful blueprint for cross industry technology bets, all designed to help people and meet major challenges.
Our second founders letter begins with this: Google was born in 1998. If its a person, it started primary school at the end of last summer (around August 19), and today its almost finished first grade.
Now, by 2019, if Google is alone, it will be a 21-year-old, and its time to leave home and go out. Although its a great honor to participate in the daily management of the company for a long time, we think its time to take on the proud role of parents, that is, to provide advice and care, rather than nagging every day!
Now that alphabet is on its feet, Google and others are betting to operate effectively as independent companies, which is the best time to simplify our management structure. When we think there is a better way to run a company, we never stick to the role of manager. Alphabet and Google no longer need two CEOs and one president.
Looking to the future, Pichai will be the CEO of both Google and alphabet. He will be the executive in charge of leading Google and managing alphabets portfolio investment in our other bets.. We are firmly committed to the long-term cooperation between Google and alphabet, and will continue to actively participate as a board member, shareholder and co-founder. In addition, we plan to continue to communicate with Pichai on a regular basis, especially on topics that we are all interested in!
Pichai brings humility and deep passion for technology to our users, partners and employees every day. He worked closely with us for 15 years in the process of founding alphabet, serving as Googles CEO and member of alphabets board of directors. He shares our belief in the value of the alphabet architecture and its ability to solve major challenges through technology. Since the establishment of alphabet, we have no better person to lead Google and alphabet to the future.
We are humbled to see a small research project develop into a source of billions of peoples dependence and empowerment. This is our bet as two Stanford students, which has led to many other technology bets. In 1998, we couldnt imagine what the next journey would be when we moved the server from the dorm to the garage.
The following is the full text of the letter:
When I visited Google employees in Tokyo a few weeks ago, I talked about the changes Google has made over the years. In fact, the only thing Ive seen that hasnt changed in more than 15 years of working at Google is change. This evolutionary process, often called uncomfortable excitement by the founders, is deeply embedded in our bones. Today, when you read the blog posts posted by page and Brin, this sentence will make you feel particularly real.
I first met page and Brin in 2004, and since then I have always benefited from their guidance. The good news is that I will continue to work with them, even though they and I play different roles. They will still advise as board members and co founders.
I want to clarify that this transition will not affect the architecture of alphabet or our daily work. I will continue to pay close attention to Google and what we are doing to push the boundaries of computing and build a more helpful Google for everyone. At the same time, Im excited about alphabet and its long-term mission to solve major challenges through technology.
The founders gave us all an incredible opportunity to influence the world. Thanks to them, we have an eternal mission, enduring values and a culture of cooperation and exploration, which makes it exciting to come to work every day. This is a solid foundation on which we will continue to develop. I cant wait to see where were going next and look forward to continuing this journey with all of you. (small)
Source: Qiao JunJing, editor in charge of Netease Technology Report