Alphabet Inc. announced on Tuesday that Executive Chairman Eric Schmidt will be resigning in January. His resignation will be ending a 17-year run wherein he had a central role in constructing the startup named Google.
Schmidt will still be serving as one of Alphabet’s board of directors. He will also be an acting adviser who focuses on technical and science issues.
“The time is right in Alphabet’s evolution for this transition,” said Schmidt in a statement.
“I’m incredibly excited about the progress our companies are making and about the strong leaders who are driving that innovation,” Chief Executive Larry Page said in a statement.
Schmidt was recruited to the company by Page and Sergey Brin, co-founders of Google. He then served as the company’s chief executive from 2001 through 2011. The three jokingly referred to his position as the “adult supervision.”
Following this, Schmidt became the executive chairman. He traveled the world most of the time, flaunting the company’s accomplishments, speaking about the state of the technology industry, and negotiating with governments when it comes to regulatory matters.
“He helped them mature into the powerhouse business it is today without throwing away the uniqueness that was Google during those early days,” said Joe Beda, chief technology officer of Seattle startup Heptio. Beda used to work with Google from 2004 through 2014.
Alphabet has a current market cap of $741 billion. Analysts estimate that it is expected to surpass $100 billion in annual revenue this year.
Facebook-Universal Music Agreement
Facebook and Universal Music struck a global deal that will provide users access to the Universal’s music catalogs. These music catalogs can then be used in uploaded videos across Facebook, Instagram, and Oculus.
Universal Music Group stated that the deal spans multiple years. It then added that the agreement will later be expanded to include Facebook Messenger.
“Together, Facebook and UMG are creating a dynamic new model for collaboration between music companies and social platforms to advance the interests of recording artists and songwriters,” said Michael Nash, Universal Music Group’s executive vice president of digital strategy.
The deal was announced days after a report of an agreement involving Alphabet was made public. Alphabet’s Youtube signed a long-term contract with Universal Music Group and Sony Music Entertainment.
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