Google announces restructuring into Alphabet
Google has announced a large-scale restructuring into a new parent company called Alphabet.
Google has announced a large-scale restructuring into a new parent company called Alphabet, which will separate its core search and advertising business from other efforts.
Current chief executive Larry Page announced he will be taking the same role at Alphabet with co-founder Sergey Brin as president.
The current senior vice president, Sundar Pichai, will be promoted to chief executive of Google – now one of Alphabet’s subsidiaries.
The core Google internet business will still comprise the main money-makers including search and advertising, YouTube, Chrome and Android. Alphabet’s other subsidiaries will encompass all of the company’s broader business ventures such as Calico, Nest and Google X.
Mr Page says the restructure allows more management scale, with each company operating with its own chief executive reporting to him.
Among talks of Google’s non-internet-related ventures being bankrolled by its core businesses, Mr Page says Alphabet will “rigorously handle capital allocation and work to make sure each business is executing well.”
Beginning with the fourth quarter, Google says financial results for all subsidiaries will be separated, giving investors – who have expressed uneasiness about some of Google’s more adventurous projects – more insight into the success of the core search and advertising business.
Alphabet will become the company’s publicly traded entity, with shares converting into Alphabet stock and classes continuing to trade under tickers GOOGL and GOOG.
Shares jumped 5% in after-hours trading by 5:30pm Monday, the day of the announcement.
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Chelsea Armitage
Tue, 11 Aug 2015
Tue, 11 Aug 2015
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Google announces restructuring into Alphabet
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