 Google Inc. GOOGL, +1.74% announced late Monday that it will create a new organizational structure, with an umbrella company dubbed Alphabet Inc. that co-founder and Chief Executive Larry Page will lead. See where Santa’s going, the number of presents he’s delivered, and what he’s thinking throughout the evening.Keep up the holiday cheer across all of your screens. "Alphabet Inc. will replace Google Inc. 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," Page said in Monday's announcement.
– Big changes at Google today: Its founders have a created a parent company for it called Alphabet and will focus on running that. Google itself will still exist, but in a "slimmed down" version that will be run by current Google exec Sundar Pichai, writes Larry Page in a company blog post. Co-founder Sergey Brin will be Alphabet's president. Essentially, Google is separating its "search, YouTube, and other Web companies from its research and investment divisions," explains Bloomberg. Google is, in fact, disappearing in one sense: Alphabet will replace it as the publicly traded entity, reports MarketWatch. Shares were up nearly 6% on news of the restructuring. Part of Page's explanation: "What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity)." Also included will be the X lab and Wing, the company's drone project, reports the Wall Street Journal. “Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related,” writes Page.