Google announces restructuring into holding company named ‘Alphabet’
Founders’ blog post reveals new CEO for Google, which will retain Maps, YouTube
Google yesterday announced it would restructure itself into a holding company named Alphabet, in a bid to give investors more insight into the workings and performance of its disparate units, online media reported.
The move will see Google itself become one entity of many under the Alphabet umbrella, along with Google X and many others, in a model akin, analysts say, to Warren Buffett's Berkshire Hathaway.
Google, founded in 1998 by Larry Page and Sergey Brin, has grown from a Web search service to a global technology provider employing 40,000, with operations in the Internet of Things, driverless cars, smartphones, wearables, medical research and investment.
The original Google unit will retain not only the search engine business, but Maps and YouTube. Page and Brin publicised the restructuring in a blog post, in which they announced that Google would be run by Sundar Pichai. Page will be Alphabet's CEO and Brin its president, while Eric Schmidt will be executive chairman of the new holding company.
"As Sergey and I wrote in the original founders letter 11 years ago, ‘Google is not a conventional company. We do not intend to become one'," wrote Page in the blog post, which was published after the markets closed.
"As part of that, we also said that you could expect us to make ‘smaller bets in areas that might seem very speculative or even strange when compared to our current businesses'. From the start, we've always strived to do more, and to do important and meaningful things with the resources we have."
In keeping with the off-the-wall edginess Google has become known for, parent company Alphabet's website address will be https://abc.xyz/
Alphabet will continue to trade under GOOG and GOOGL and all Google shares will convert directly into the same number of Alphabet shares. Google's share price jumped 5% in after-hours trading, following the announcement.