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Google Creates New Parent Company Called Alphabet

Google Inc. announced a corporate restructuring on Monday, forming an umbrella company called Alphabet. Alphabet is the new holding company that will manage Google and all of its products. Google co-founders Larry Page and Sergey Brin will run this new venture. Larry Page announced the change and said that he would hold the same title at Alphabet and Sergey Brin would be the President. The new holding company will include all of Google’s current ventures. Sundar Pichai will be the new CEO of search unit Google, promoting from the position of Vice President.

The domain name for Alphabet is abc.xyz and not alphabet.com.

Larry Page says that the new company is named Alphabet as Alphabet 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!” Under the new structure, “this newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead.” Alphabet will also include units focusing on life sciences such as glucose-sensing contact lens and health research firm Calico. Page said, “Alphabet Inc. will replace Google Inc. as the publicly traded entity, and all shares of Google will automatically convert to shares of Alphabet, with same rights.”

Alphabet

In short, Google will become a wholly-owned subsidiary of Alphabet. The move appeared to be an attempt to focus on more creative and ambitious projects. It will operate as the parent company for a number of companies including Google. Android, YouTube, search and ads will continue to remain part of Google Inc. Alphabet Inc. will also include Calico, Google Ventures, Google Capital, Google X and other subsidiaries.

“We are not intending for this to be a big consumer brand with related products — the whole point is that Alphabet companies should have independence and develop their own brands,” said Page in the announcement.

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