Google company is expanding their business of internet search advertising and is changing its operating structure by creating a new holding company known as Alphabet. The company says that its new structure will give more independence to many of its wide – ranging and ambitious projects.
Google To Expand their Business with ‘Alphabet’:
Under the plan announced on Monday, Alphabet will do comprise of the core Google business which includes internet search as well as mapping and YouTube, not only that but also with newer businesses that will be managed separately, such as Google Fiber, Nest and the investment arm Google Ventures and many more expansions.
Google CEO Larry Page will become CEO of the new entity or else new field, with his co-founder Sergey Brin to be as president. After a longtime Google executive Sundar Pichai, who has taken on numerously important roles at the company in recent years, will be CEO of the core business of Google.
The change may give investors a crystal clear picture of how much Google is spending on some of its newer ventures as well as for business expansions, such as its effort to build a self-driving car, develop a glucose-sensing contact lens or install high-speed Internet fiber networks and many more in a number of U.S. cities, said Colin Gillis, an investment analyst at BGC Partners.
Google Inc said its new chief financial officer Ruth Porat that he will hold the same title for both Google and Alphabet. Once the reorganization is done, the company says its two existing classes of publicly traded stock will continue to trade on the NASDAQ exchange under the ticker symbols “GOOG” and “GOOGL.”
The Mountain View, California, company’s stock was up about 5 percent in after-hours trading following the announcement Monday afternoon, says a source.