Google to restructure into new hold

Google to restructure into new holding company called Alphabet

Google is dead. Long live Alphabet.
The tech company announced on Monday that it would rebrand itself as Alphabet – a new holding company whose largest wholly owned subsidiary will be Google.
In a surprise blog post made public after the stock markets closed Larry Page and Sergey Brin, Google’s co-founders, announced a radical shake-up of the company’s corporate structure and management, handing control of its core search engine business to rising star Sundar Pichai.
The new company, Alphabet, will preside over a collection of companies, the largest of which will be Google. Even the site’s new address also eschewed convention, https://abc.xyz/
The tech giant has come under pressure as its founders have used the enormous success of its search engine to fuel riskier bets on autonomous cars, smart household devices and cutting-edge medical research. The major restructuring will ostensibly give investors greater insight into how the money is being spent.
All shares of Google will automatically convert into corresponding shares of Alphabet, which will continue to trade under the stock ticker symbols GOOG and GOOGL. Shares in Google soared 5% in afterhours trading. The new structure is said to be similar to Warren Buffett’s Berkshire Hathaway, which wholly owns a number of diverse holdings and has stakes in several others.
Page will become Alphabet’s CEO. Brin will be its president, and Eric Schmidt will be the executive chairman of Alphabet. The company’s chief business officer, Omid Kordistani, will step down and become “an advisor to Alphabet and Google” according to the company’s SEC filing.