Google has appointed Sundar Pichai, who previously served as Product Chief, as the company’s new CEO…and is also reorganizing Google as a subsidiary of a holding company called Alphabet, of which Larry Page will be the CEO. Page wrote a blog post on Google’s investor site explaining the news:
Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.
Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
The holding company will also include Google’s investment arms and its “X lab” division.
This seems like its mainly a reorganization for stock/business purposes, but it also strikes me as a good way to dissociate certain projects from the everyday operations that are “Google”–perhaps inviting less scrutiny? We live in interesting times.
—Linked by Dan Moren