Google is reorganizing under a new name — Alphabet — a parent entity that will contain several companies: Google, Nest, Calico, Fiber (high speed internet service), Google Ventures, Google Capital, and incubator products like Google X that is developing the drone service, Wing.
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. Google will become a wholly-owned subsidiary of Alphabet. The company’s two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
While Larry Page and Sergey Brin will run Alphabet, Sundar Pichai (pictured above left), who has been senior vice president in charge of products, becomes chief executive of Google. According to The New York Times, Google will contain Internet products like search, advertising, maps, YouTube and applications like Gmail and Android, the company’s mobile operating system.
In a blog post yesterday, Page wrote; “For Sergey and me this is a very exciting new chapter in the life of Google — the birth of Alphabet,” Larry Page, the chief executive of Google, wrote in a blog post on Monday. “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search.”