Page said the structure will make him stay on focus with the details inside Google.
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It is noteworthy that Pichai’s appointment comes just over a month before Modi is scheduled to visit Silicon Valley in September and is expected to meet heads of various technology giants based there. Sundar Pichai, Google’s former product chief, has been appointed as CEO of Google. Page notes in a blog post that when Google was founded, its mission was not to be a conventional company. In fact, in some ways, it will not even be “Google” at all – from now on, that name will refer only to the company’s search business.
In a surprise and significant re-organisation, Page announced the formation of a new parent company Alphabet Inc which will replace Google 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 will become CEO of the parent company, alongside Sergey Brin who will act as Alphabet’s president.
They include Google Fiber, Nest, the investment arm Google Ventures, its current efforts in life sciences and its delivery drones venture.
“We continue to think an era of more disclosure and cost consciousness… is positive for Google”, said technology specialists Pacific Crest.
Yesterday, Google laid out plans for corporate restructuring, with different facets of the business separating underneath a new company, Alphabet. They will be separated from the main Google business under Alphabet. Google, the thing you use to search for stuff, is still known as Google, but will now just be one of Alphabet’s many businesses.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google”, Page said.
On the stock exchange, what was once Google will henceforth be known as Alphabet.
“This event will at the very least help investors better assess the revenue growth trajectory, as well as the capital intensity of the company’s more mature versus emerging businesses”, analysts at Credit Suisse said.
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In recent years, Google has ramped up spending on ambitious projects, and investors have clamoured for it to be more clear about its costs.
