Alphabet Inc. is the parent company that controls Google.
Understanding the Relationship: Google and Alphabet
Google, known for its search engine, Android operating system, and a vast array of online services, operates as a subsidiary under Alphabet Inc. In 2015, Google underwent a restructuring that led to the creation of Alphabet. This reorganization aimed to separate Google's core businesses from its more experimental and diverse ventures.
Alphabet's Role
Alphabet acts as a holding company, overseeing Google and other companies, each operating independently. These "other bets" include companies involved in areas such as:
- Self-driving cars (Waymo)
- Life sciences (Verily)
- Venture capital (Google Ventures/GV)
- Private equity (Google Capital/CapitalG)
- Internet service (Google Fiber)
Key Individuals
While Alphabet controls Google, key individuals have significant influence.
- Sundar Pichai: CEO of Google and Alphabet
- Other Alphabet Board Members: The board of directors also play a vital role in overseeing the company's strategy and performance.
How Control is Exercised
Alphabet controls Google through:
- Ownership: Alphabet owns all of Google's stock.
- Management: Alphabet appoints Google's CEO and other key executives.
- Strategic Direction: Alphabet sets the overall strategic direction for Google.
- Financial Oversight: Alphabet controls Google's budget and financial resources.
Revenue Generation
As indicated in the provided reference, the vast majority of Alphabet's revenue comes from Google's advertising business, supplemented by its cloud computing and mobile operating system ventures.
