Google is restructured and will be controlled by a new array called Alphabet – Financial Journal

Google is adopting a new structure that will make the firm more of a holding, giving the main web business more independence and at the same time, providing more transparency on investments ambitious executives and research spending.

The new conglomerate will be renamed Alphabet Inc., and will include search engine YouTube, Android mobile software and Internet-based products.

Alphabet also incorporate Calico, Google Ventures, Google Capital, Google X and other subsidiaries, the company said yesterday in his blog.

“Alphabet is primarily a collection of companies, of which Google is of course the biggest, “said Larry Page. The co-founder of the firm explained that the goal is not to convert the cluster into a consumer brand. “For too long we have it believed that over time companies tend to become comfortable doing the same thing, just making incremental changes,” he said. “Our company is operating well today, but we believe we can make it cleaner and more responsible.”

Changes
results for the fourth quarter will be introduced in stages over the coming months and that they will meet in January, will be the first under the new scheme. With the change, investors will have more details on how the units, something long requested by Wall Street operate.

The new scheme will provide greater clarity on how Google invests in several projects, including driverless vehicles, service and high-speed Internet health-related technologies.

“It has been much speculation about how much money placed in these other projects,” said Colin Gillis Bloomberg , an analyst at BGC Financial. “That will come to an end. This also gives them the structure to add another line of business if they get something,” he said.

Changing business Larry
Page, current CEO, will keep that position in Alphabet while Sergey Brin, the other co-founder, president and Eric Schmidt will have the title of CEO.

Ruth Porat continue as CFO and Sundar Pichai, currently executive vice president, will be promoted to CEO of Google, which generates much of the annual revenues of US $ 60 billion.

The new company will replace Google as the entity traded on the stock exchange and all actions are automatically converted into the same number of shares of Alphabet, with the same rights
Apple shares rose 5.8% in extended operations

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