Who would've expected Google to become anyone's subsidiary? But that's what happened Monday.
Google announced a new corporate operating structure, creating a new company, Alphabet, that will count the Internet giant as a subsidiary.
Current CEO Larry Page said in blog post he would take the same post at Alphabet, while Sundar Pichai, currently a senior vice president in charge of Internet businesses, will be CEO of Google. Alphabet Inc. will replace Google 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.
Alphabet will house the main Google businesses such as search, maps and YouTube, along with businesses managed separately such as Fiber, Nest and investing arms like Google Ventures.
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"We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant," Page said in a blog post. "Our company is operating well today, but we think we can make it cleaner and more accountable."
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Fellow co-founder Sergey Brin will become president of Alphabet, and Eric Schmidt will be executive chairman. Google's current directors will become directors of Alphabet.
Page said: "Alphabet is mostly a collection of companies, the largest of which is, of course, Google."
The company said the new arrangement will take effect "later this year."
The website for Alphabet is now listed as abc.xyz.