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Eric Schmidt makes way for Larry Page – New Google CEO

From left to right - Eric, Larry and Sergey in a self-driving car in a photo taken earlier today
From left to right – Eric, Larry and Sergey in a self-driving car in a photo taken earlier today, Credits: Google

Google threw a surprise at its fourth quarter earnings call, and announced that company co-founder Larry Page will replace Eric Schmidt as the Chief Executive Officer of Google. Eric will still be with the company and will work as executive chairman.

The change will come into effect from April 4, and Google cited the following reason for this reshuffle.

“To streamline decision-making and create clearer lines of responsibility and accountability at the top of the company.”

As the Q4 results were over expectations, people were overly surprised at the change. Company reported a profit of $2.54 billion, or $7.81 a share, up from $1.97 billion, or $6.13 a share, a year earlier. Excluding stock-compensation costs and other impacts, per-share profit grew to $8.75 from $6.79.

Revenue jumped 26% to $8.44 billon. Traffic-acquisition costs, commissions paid to marketing partners, were 25% of revenue. Excluding them, revenue climbed roughly 29% to about $6.37 billion.

Highlight of Eric Schmidt as Google CEO:

  • August 2001: Schmidt becomes CEO of Google, when it has a workforce of about 200. Page is named president of products, and Sergey Brin president of technology.
  • September 2002: Google News begins.
  • March 2003: Google announces content-targeted advertising service, enabling publishers to access its vast network of advertisers. The service later gets the name AdSense.
  • March 2004: Google begins testing its Gmail e-mail service. The company’s 800 employees move into new headquarters, known as “Googleplex,” in Mountain View, California.
  • February 2005: Google Maps goes live.
  • January 2006: Google goes live in China.
  • November 2006: Google buys video site YouTube for $1.65 billion.
  • November 2007: Google announces creation of the Android mobile- phone operating system.
  • March 2008: Google wins approval of its $3.1 billion acquisition of display-advertising company DoubleClick Inc. after a months- long antitrust investigation.
  • September 2008: Google introduces Chrome Internet browser to challenge Microsoft’s Internet Explorer. The first Android-based phone is unveiled by T-Mobile. It goes on sale a month later.
  • August 2009: Schmidt resigns from Apple board amid increased competition between the two companies.
  • May 2010: Google completes $750 million purchase of mobile- advertising company AdMob.
  • July 2010: Google announces $700 million takeover of flight- information provider ITA Software Inc., a deal now subject to antitrust review.

Highlights via Bloomberg

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