Chennai-born Sundar Pichai Named New CEO of Restructured Google

Sundar Pichai, Page’s deputy, will be promoted to become CEO of Google Inc., which generates the bulk of Google’s $60 billion in annual revenue.

“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google”, said current Google CEO Larry Page in a blogpost.

Google shares jumped about 5% in extended trading Monday.

Alphabet will be the name of what will effectively be a new holding company, the Web company said in a blog post Monday.

Eric Schmidt, the executive chairman at Google, will transition to Alphabet with the same title, Google said.

This story corrects the age of Sundar Pichai, who is 43 not 42.

Alphabet now owns a slimmed down Google which will continue handling products such as YouTube, Chrome and Android, as well as its former non-core businesses, including X lab, Ventures, and Capital.

Google’s finances will also “be provided separately than those for the rest of Alphabet businesses as a whole”.

The new structure could make it easier for Google Inc.to sell off some of its unrelated businesses, or buy new ones, analysts said.

Alphabet will replace Google as the publicly-traded entity and all shares of Google will be automatically converted into the same number of shares for Alphabet with the same rights. Mainstream reaction to this has been to assume this means greater transparency in Google’s operations, but if anything this new structure for Google/Alphabet offers the potential for even tighter control over information.

In a filing with the Securities and Exchange Commission, Google said the new arrangement will take effect later this year and that it will likely result in two reportable, financial segments.

“For example, if a unit is doing well or badly they can dial it up or down, they can form partnerships or different companies”, said Kay, the Endpoint Technologies Associates analyst. The company’s founding principle, after all, is that it thinks differently about such things. That should give a clearer picture of how Google’s core Internet business is performing, separate from other ventures, said analyst Colin Gillis of the investment firm BGC Partners.

The shuffle also looked to have the markings of Ruth Porat, who joined Google as its chief financial officer in March from Morgan Stanley.

Most of these brands have little to do with Google’s newer ventures to be housed under the Alphabet umbrella, including its divisions working on smart contact lenses and driverless cars.