Google has outgrown Google, it seems. The company says in a blog post and SEC filing that it’s re-establishing itself as a new entity called Alphabet — with Google as a subsidiary. You Tube will remain with Google, but Google Fiber — the cable-like TV and broadband service — will be separate.
The post doesn’t spell out all of the details of the new corporate structure. But it it says that Alphabet subsidiaries will include Life Sciences (which is developing a glucose-sensing contact lens), Calico (studying longevity), Nest, Google Ventures, Google Capital, and Google X.
The new structure will be introduced for the Q4 company report. Google’s results will be shown separately from other lines. Larry Page will be CEO of Alphabet with Sergey Brin its President and Eric Schmidt its Executive Chairman. Sundar Pichai, now Google’s SVP of Products, will become CEO of the subsidiary.
“Our company is operating well today, but we think we can make it cleaner and more accountable,” Page says in the post.He adds that “our model is to have 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. “
Alphabet will become the new name for the publicly traded business, although the shares will maintain the current stock symbols: GOOGL and GOOG.
Google’s up more than 5% in post market trading.