Global tech giant Google has announced the formation of a parent company, Alphabet, which will house a “slimmed down” version of Google as well as the other companies that have branched off from it, such as its Life Sciences, drone and Calico longevity-research divisions.
The change will also see significant changes in Google’s executive structure, with co-founder Larry Page (pictured) moving from Google CEO to Alphabet chief executive, and Sundar Pichai, who headed up product and engineering responsibility for the company’s Internet businesses including Chrome and Android, named Google CEO.
According to a blog post from Page on Monday (August 10), Page and fellow Google co-founder Sergey Brin, now president of Alphabet, will oversee the parent company, which will employ for its businesses “a strong CEO who runs each business, with Sergey and me in service to them as needed.
“We will rigorously handle capital allocation and work to make sure each business is executing well,” Page continued.
Google will now function as a wholly-owned subsidiary of Alphabet, and the parent company will replace Google as the publicly-traded entity. “All shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights,” said Page in his post.
Eric Schmidt, Google executive chairman, will serve in the same role for Alphabet.
Page also mentioned in his post how some of Google’s businesses now have their own identities, including global video portal YouTube. “Susan [Wojcicki, YouTube CEO] is doing a great job as CEO, running a strong brand and driving incredible growth,” he said.
A filing with the United States Securities and Exchange Commission states that “main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure.”
“I should add that we are not intending for this to be a big consumer brand with related products — the whole point is that Alphabet companies should have independence and develop their own brands,” Page emphasized in his post.