Google’s new parent company, Alphabet, is now the most valuable company in the world, having knocked Apple from the top spot.
Last year, Google underwent some major changes to the structure of the company. It was rearranged so that all the non-technological projects that Google was undertaking could come out from under its wing and let the company focus on its specialty in the internet and phone industries.
Instead, a new company, Alphabet was formed, and Google split into several smaller companies, all of which came under the ownership of Alphabet.
Now this new umbrella corporation has surpassed Apple as the most valuable listed company, having seen a global revenue rise of 13% to £52bn (or $75bn). The group’s tax rate also reportedly fell down to 17%.
Although the revenues in the UK rocketed to $1.9bn, it was aided by the controversial tax structure in Ireland. However, the tech giant struck a deal with HMRC which has allowed it to carry with this structure.
Google has commented on the issue that “After a six-year audit by the tax authority we are paying the amount of tax that HMRC agrees we should pay. Governments make tax law, the tax authorities enforce the law and Google complies with the law.”
While Alphabet has surged to the top, Apple will hope to see some regaining of ground when it releases its iPhone7, which is to be released next year. Furthermore, rumours of the iCar, if true, will help to launch Apple to a whole new area in which they can gather huge amounts of revenue.