Alphabet Inc, the parent company of search engine giant Google, announced on Tuesday that its co-founders Larry Page and Sergey Brin will be stepping down from their current positions in the company. Both Page and Brin have agreed to relinquish full control of Google and Alphabet to the former's CEO Sundar Pichai.
According to a statement released by both Brin and Page, the leaders of the most powerful companies in Silicon Valley felt that it was likely time to simplify the companies' management structure. Both co-founders talked about the evolution of Google and how it managed to survive the internet bubble when they were still serving as its chief executives.
As Google grew and was placed under a newly built company, both co-founders slowly ceded control to Pichai, who was a 15-year old Google veteran. Pichai eventually became the public face of the company after he took the chief executive position in 2015.
Alphabet is currently one of the most valuable companies in the world with a market capitalization of around $900 billion. The company has grown its portfolio to not only include its massive search engine business but also video streaming juggernaut YouTube and most recently its fitness tracking hardware business FitBit.
Brin and Page mentioned in their joint statement that in this day and age, Google likely doesn't need two CEOs and a president. The co-founders also explained that they aren't the types to hold on to management roles and that there is a better way to run the company.
The two entrepreneurs wrote in the statement published in the company's blog that they are now handing over the driver seat to both companies to Pichai, who will essentially be serving as CEO of both Google and Alphabet moving forward. The statement continued and stated that Pichai will become the person responsible and accountable for Alphabet, its investment portfolio, and any other future acquisitions and businesses.
Brin and Page did not elaborate on whether they would be divesting or relinquishing their voting rights in the company they founded. Despite stepping down from their positions, both co-founders are still substantial stakeholders in the company, which means that they still retain huge influence in the firm's decision making.
The exit of both Brin and Page from the company comes at a crucial time where Alphabet is now taking on more ambitious goals in terms of diversifying its portfolio. The company is reportedly looking into entering lucrative industries such as healthcare and personal finance to expand its business.
