In a surprise move, Tech Company, Google Inc has announced its parent company will now be called Alphabet Inc. Alphabet will be a holding company of some sort and Google will be its wholly-owned subsidiary.
Alphabet Inc would be the new name Google Inc publicly trades and all the number of shares of Google will automatically become that of Alphabet with the same rights. The company would however continue to trade on Nasdaq as GOOGL and GOOG.
Today's news brought to you by the letter G: http://t.co/3sv9rZ9Ui6
— Google (@Google) August 10, 2015
Alphabet (abc.xyz) will become the umbrella which the several businesses under Google operates. The Google Unit will now include Youtube, maps, apps, search, ads and Android. While other businesses such as Google Ventures, Google Capital, Google X, Calico, Nest, and Fiber will now be managed separately from Google and would have separate financial reports.
In a necessary management restructure, Larry Page will no longer be the CEO of Google and will pick up the role of the CEO of Alphabet. Also, Google Co-Founder, Sergey Brin will assume the role of President, David Drummond will be the Chief Legal Officer and Secretary while Eric Schmidt will be the Chairman of Alphabet.
Former Morgan Stanley CFO, Ruth Porat will continue as the CFO of both Google and Alphabet; Sundar Pichai will be the new CEO of the new slimmed down Google. The company’s current directors will become directors of Alphabet.
Source: Google Blog
