Google to become part of new company, Alphabet

Who would’ve expected Google to become anyone’s subsidiary? But that’s what happened Monday.

Google on Monday announced a new corporate operating structure, creating a new company, Alphabet, that will count the Internet giant as a subsidiary. Sundar Pichai, currently a senior vice president, will become CEO of Google. Current chief executive Larry Page will take the same post at Alphabet.

“Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related,” Page wrote in a blog post Monday.

Getty Images Sundar Pichai, Google

Getty Images
Sundar Pichai, Google

Alphabet will become the company’s publicly traded entity. All shares will convert into Alphabet stock, with the two classes continuing to trade under the tickers GOOGL and GOOG.

Google’s Class A shares jumped more than 3 percent on the news.

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Alphabet will contain businesses “far afield” from the company’s core products—including Life Sciences, Calico and Google X, Page wrote.

The Web site for Alphabet is now listed as abc.xyz.

This story is developing. Please check back for further updates.

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