Google Created its Own Parent Company

“Our company is operating well today, but we think we can make it cleaner and more accountable”, Page wrote on Monday in a blog post.

Here is what we know so far – Google’s billionaire co-founders Larry Page and Sergey Brin will run Alphabet, with Page as CEO and Brin as President.

Mr Page will become chief executive of Alphabet, with senior vice president Sundar Pichai becoming CEO of Google.

Alphabet Inc. will replace Google Inc.as the publicly traded entity, and all shares of Google will automatically convert to shares of Alphabet, with all of the same rights, Page said.

If you’re searching for reasons why Google has renamed itself Alphabet, here’s one: It positions the tech company to expand into health care, which could be very healthy for its long-term fortunes. Despite the reorganization, Google will continue to develop new products within the subsidiary, such as the recently launched Google Photos and Google Now.

Jan Dawson at Jackdaw Research said that with the transformation, “it will finally become clear quite how large and unprofitable all the non-core initiatives at Google are, which might well increase pressure from shareholders to exit some of those businesses”.

“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google”, Page said. Alphabet will be a “collection of companies” that generally fall outside Google’s main sphere of interest.

We look forward to seeing what the new Google and the rest of its siblings will come up with under this new business structure.

Do note though, that since Google does not plan to do any business with the name “Alphabet” and more through the subsidiaries, this might not really become that big an issue for. In general, our model is to have a strong CEO who runs each business, with Sergey [Brin] and me in service to them as needed. Another is Wing, “a drone delivery effort”. Probably less frustration for specialised staff who may have felt that previously it was hard to cut through the noise at Google since there were so many projects running simultaneously. Google have a long history of buying tech start-up companies, not all of which necessarily are complemented by being associated with Google. Page and Brin are likely banking on more investor support with the restructuring, though – on quarterly reports, Alphabet will now be able to report the performance of its divisions separately, showing off the strength of individual projects while explaining away the weaker ones.

Both classes of the Mountain View, California, company’s stock rose more than 6 percent in after-hours trading following the announcement Monday afternoon.