Tech giant, Google, is changing the name of its parent company name to Alphabet Inc. the new company structure is to allow the company operate freely in its new ventures that go beyond its core internet search and app industry.
The company will continue to operate as Google in its internet ventures including the search engine but the new holding company, Alphabet,will include not just Google but the company’s huge array of latest operations in medical research, auto-engineering and electronic home appliances.
The company said the new arrangement will allow its different businesses to be run by different CEOs.
“Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort,” the company wrote in its announcement. “We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.”
Sundar Pichai, who before ran most of Google’s most important products, will become its CEO. (Pichai had been rumoured to be in the running for the vacant position of Twitter CEO.)
Google co-founder, Larry Page wrote in a blog post Page that Alphabet Inc. will replace Google as the publicly-traded entity. All shares of Google will be converted into the same number of shares of Alphabet, which will continue to trade under the stock ticker symbols GOOG and GOOGL.
Google reported more than $14bn in profit on $66bn in sales last year, most of it from lucrative internet advertising, while other ventures have required large investments without showing immediate returns.