Google has formed a new parent company called Alphabet, which will be a umbrella to all of Google’s various businesses. The new entity will be slimmed down, according to a recent blog post from the search giant, with key executive Sundar Pichai promoted to CEO, says co-founder Larry Page. Pichai is said to have “really stepped up” since he took on new product responsibilities last year, Page said, adding also that “has been saying the things I would have said (and sometimes better!) for quite some time now”.
Businesses that weren’t part of Google’s Internet products will now move under the Alphabet umbrella such as Calico, a medical company that aims to extend human lifespans. Alphabet will also be the parent of other Google firms such as Nest, Fiber, Google X, and its ventures and capital investment arms.
Search, Maps, Android, YouTube and advertising will remain part of Google.
Google co-founder Sergey Brin, Alphabet’s president, promised to make sure each business is executing well, and also set out the compensation for the new companies’ CEOs.
The change is also part of a shake up for investors. All shares in Google will be converted into Alphabet stock and starting in Q4, Google results will be reported separately to the rest of Alphabet.
Page said that the aim is to make things cleaner and more accountable. But despite the new company, each division will have a degree of independence and the ability to create its own brands.