Google Inc. is now Alphabet Inc.
In a letter to shareholders on Monday, Google’s current CEO Larry Page spelled out what seems like a seismic change in the Internet search giant: The incorporated company now falls under a new holding company, called Alphabet, run by the two co-founders, Page and Sergey Brin. Omid Kordestani, Google’s current chief business officer, will be an adviser to Alphabet.
And Google, as it stands today, falls under the purview of Android SVP Sundar Pichai. Google shares rose 5 percent in after-hours trading.
Page wrote: “Sergey and I have been super excited about his progress and dedication to the company. And it is clear to us and our board that it is time for Sundar to be CEO of Google. I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations.”
The company will trade under a different name, but little else has changed. This structure has been in the works for some time, beginning last October when Page restructured the organization, putting Pichai at the head of all Google products. In recent years, Page has been pushing the company to operate like Berkshire Hathaway, as a constellation of companies tied together through investments.
As CEO of Google, Pichai now controls the suite of existing Google products and services. The moonshots — the drone delivery program and unannounced Google X projects — fall under Alphabet, along with Google’s two investment arms, Ventures and Capital.
We will add updates as we find out more.