Provideo Financial Discusses The Return Of Page To Google’s CEO Position

Top Quote New Google CEO makes moves in his first day in office that signal things to come. End Quote
  • (1888PressRelease) April 06, 2011 - Larry Page took over as CEO of Google on the first Monday in April and on his first day in office bid $900 million for Nortel Networks, and made some changes to shake things up.

    Larry Page a co-founder of the search engine giant, has taken back the rains of the company in a long awaited change of leadership. He is attempting to shake up the company and try to stimulate growth in a company that already has annual revenue of almost $30 billion and a market valuation approaching $200 billion. During his first 2 days he made bold moves and it seems that invigorating the company through change is the strategy. The old adage “if it ain’t broke, don’t fix it” doesn’t seem to be the Google approach. In an interview earlier this year, Page said:

    “Every time we increase the size of the company, we need to keep things going to make sure we keep our speed, pace and passion.”

    One of those moves seems to be a change in some top executives. On Page’s first day it was announced that Jonathan Rosenberg, Google’s senior vice president for product management, would soon leave the company. Rosenberg joined Google in 2002 after working at Excite AtHome Corp., Apple Inc. (AAPL) and other Silicon Valley companies. Last month, Google awarded him a bonus of $1.7 million and $5 million in stock. The day after Page took over as CEO, Rosenberg announced his resignation. He oversaw the design and creation of all of Google’s products, including consumer and business services.

    In his first day, Page also made a bid to acquire Nortel Networks and their patent portfolio for $900 million. The acquisition would build up Google’s defences against patent suits, and could be a very good move for the company. The $900 million will not likely secure the patents that Google is after, but it is a signal, that the company is ready to be aggressive, and they will likely pay more.

    Google’s size makes them a giant multicoloured target for litigation, and particularly in the American legal system, this needs to be a primary concern for them. One of the best defenses against patent litigation is to have a formidable patent portfolio, and as a relatively young company, Google's portfolio doesn't stack up to large tech companies like Microsoft and IBM.

    There are a lot of unknowns when a new CEO takes the reins, but Page isn’t doing anything quietly. It remains to be seen how he will help Google navigate its growth through this critical period, but he will bring energy to the company. With legal and competitive problems on the horizon he has a big job ahead of him.

    Page who originally acted as the CEO after its founding, but the company has grown by more than 24,000 employees since then. He doesn’t have any experience running a company of that size, but his goal is to bring back the start-up spirit, and find Google’s second trick. This seems to be the motivation for the change in the product management position. Page wants to find a new strategy for success. Until now they have based all of their strategies and products around advertising, but Page seems to want to supplement this with entirely new revenue models. What that will be remains to be seen, but there will be plenty in the works, that is for sure.

    It is our belief that the move is a good one for Google. Page’s return to the head position won’t likely have the effect that Job’s had on Apple, but the idea is similar. Bring back the entrepreneurial and innovative spirit into a company that is beginning to settle into corporate lethargy. Find new talent, take risks, develop new ideas, and break the norms and rules that the company has set forth. Google is an innovative company, nobody is going to argue that, and Page’s return signals a dedication to that spirit that will help them continue to recruit and keep the best talent in the world, and develop groundbreaking products and services that will enable the company to continue its growth spurt past adolescence.

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