It's been three years since Google co-founder and then-CEO Larry Page unveiled a new corporate structure for the company, transforming "Google" into "Alphabet," CNBC reports.
Mr. Page — who now serves as Alphabet's CEO — revealed plans to separate Google's core business from the company's "Other Bets," such as its more experimental healthcare projects and venture capital arms, on Aug. 10, 2015. Under the plans, all the company's subsidiaries, including Google, would be housed under the parent company Alphabet.
Here are four things to know about what that change has meant for Google:
1. Mr. Page's vision for Alphabet was to encourage the company's Other Bets to be more financially accountable, according to CNBC. Google, by separating into a standalone company, would be able to focus on its search engine and advertising business, while the remaining subsidiaries would aim to be Alphabet's next billion-dollar businesses, with their own CEOs, budgets and goals.
2. Overall, Alphabet is in a stronger place financially than three years ago, suggesting the corporate restructuring move was a positive one. Alphabet's stock price is up by more than 85 percent. Google, in particular, has "thrived," with quarterly revenues up by more than $13 billion since 2015, according to CNBC.
3. However, Alphabet's Other Bets have experienced mixed results, and it's unclear whether their position in the company increased or slowed innovation. The 13 companies categorized as Other Bets reported $145 million in revenue during Alphabet's second quarter of 2018, compared to the parent company's total revenue of $32.66 billion.
4. In terms of leadership, CEOs from Other Bets often don't hold power over their companies as they would if they were independent entities, according to CNBC. Many of these CEOs rely on Mr. Page to approve financials and major changes, and some CEOs have seen their company's budget slashed as interest from Alphabet executives wanes.
"Beware their changing whims," a former executive from Access told CNBC. Access is Alphabet's division focused on Fiber internet efforts.