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What Does Google's Reorganization Mean for Consumers?

The announcement Monday about a new Google parent company called Alphabet, a new CEO and a new corporate structure has nothing to do with consumers.
Image: Sundar Pichai, Senior Vice President for Products, delivers his keynote address during the Google I/O developers conference in San Francisco
Sundar Pichai delivers his keynote address during the Google I/O developers conference in San Francisco on May 28.ROBERT GALBRAITH / Reuters file

Don't worry, Internet searchers, Google isn't changing a thing.

That big announcement Monday about a new parent company called Alphabet, a new CEO for Google and a new corporate structure — it has nothing to do with you.

Here's why: Google search plus YouTube plus Android plus maps account for almost all of Google's $66 billion in annual revenue and $460 billion stock market capitalization. The one thing the world's largest Internet company won't do is stand between you and your many-times-a-day Google.com habit.

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To be clear, this move is for investors, including Google's two biggest shareholders Larry Page and Sergey Brin, and a handful of employees.

Image: Sundar Pichai, Senior Vice President for Products, delivers his keynote address during the Google I/O developers conference in San Francisco
Sundar Pichai delivers his keynote address during the Google I/O developers conference in San Francisco on May 28.ROBERT GALBRAITH / Reuters file

For Page and Brin, they get to offload the search business and focus on the crazy stuff — the self-driving cars, the quest to extend life and to improve Internet connectivity through use of hot air balloons. Longtime engineering head Sundar Pichai is now in charge of the core Google business.

Investors get some degree of transparency and clarity: They get to see just how profitable the main advertising business is, while also getting a view into the costliness of Page and Brin's moonshots. This follows the recent hiring of Wall Street veteran Ruth Porat as finance chief.

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"The new structure is a clear positive, as it increases reporting transparency over the coming months, which we believe is a key catalyst for shareholder value creation," wrote Anthony DiClemente, an analyst at Nomura Securities, in a report. He has a "buy" rating and $800 price target on Google shares, 26 percent above Monday's closing price.

Finally, Google gets to promote some of its most talented and loyal lieutenants to true leadership roles. In addition to Pichai, Google X head Astro Teller and Google Capital lead David Lawee could gain greater authority.

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But for the many millions of you who are neither investor nor employee -- just contributors to the 50,000 Google searches per second -- today is exactly the same as yesterday.