Search Giant Rebrands As Alphabet, Google Inc. Placed Under New Umbrella

A massive reorganization has been announced by Google Inc[NASDAQ:GOOGL] and now the search engine giant will be addressed as Alphabet. It will work as a new parent to the company and internet search will only be one of several entities under the umbrella.

However, there will be no goodbye to Google Inc[NASDAQ:GOOGL]. It will exist and divisions under it will include search, apps, Android, YouTube, ads and maps. The newer business lines such as the Google Capital, Google Ventures, internet provider Fiber, smart home acquisition Nest and aging research division Calico are to be managed under the new name Alphabet.

Google co-founder and CEO Larry Page said in a blog post a new company is being created to make things much cleaner and more accountable even though they are operating well in current date.

Page will be holding the CEO chair of Alphabet and Google other co-founder Sergey Brin will act as the president. Eric Schmidt will be the Executive Chairman of the new company. Presently he is holding the post of chairman in Google Inc. Ruth Porat will be the Senior Vice President and Chief Financial Officer of Alphabet. He will retain the same posts in Google too.

With the new formation the new CEO of Google will be Sundar Pichai. Presently he is senior vice president of products.

The concept of Alphabet is to manage collection of smaller companies under one umbrella. Google is the largest of those companies as of now.

Shareholders should not worry with the new company formation as it is reported the Google shares will be converted to Alphabet shares later this year and the same rights are to be retained by shareholders.

With the news the shares of Google Inc[NASDAQ:GOOGL] popped up today, close to 5.5% by around 5 p.m. The closing price is $633.73