Google Search for "Alphabet" (Photo : Reuters)
Google officially became a subsidiary of the holding company Alphabet at the close of business on October 2, Friday, due to reorganization. The umbrella company also includes Google Fiber, Life Sciences (contact lenses and blood sugar-monitoring devices), Nest, Google Capital, and Google X (drone deliveries, city-wide Wi-Fi, and self-driving cars); and the products Search, Android, Ads, YouTube, and Maps. The business change will make Sundar Pichai the new CEO in charge of daily operations, and help co-founders Larry Page and Sergey Brin invest in new ventures and markets.
Google's Class A and Class C shares will now automatically convert into the same number of Alphabet Class A and C shares, and trade on Nasdaq starting on October 5, Monday, according to Reuters. However, the ticker symbols will stay the same.
The restructuring was first announced in August. Its goal is to separate the California-based company's core businesses such as its Internet search engine, from other business ventures.
Google co-founder Larry Page will be Alphabet's chief. In addition, each business will have an individual chief executive.
Google's core businesses will fall under the company Google. It still functions as a fully-owned Alphabet subsidiary, according to Engadget.
Sidewalk Labs will also join Alphabet. The company develops various technologies such as a Wi-Fi program for metropolitan cities.
Starting in Google's fourth quarter (Q4) in January, Alphabet will have a pair of reporting units. They will include Google and collectively all other Alphabet businesses.
The tech giant's investors have been mostly pleased about Google's recent restructuring. A main reason is that it will make the financial data for Google's very profitable core businesses more transparent.
