Search engine giant Google Inc on 10 August 2015 launched a new parent company called Alphabet Inc that separates its highly profitable search and advertising business.
The new parent company was formed as part of Google’s new organisational structure which will help the company to keep tremendous focus on the extraordinary opportunities and products.
With this, Google will be replaced by Alphabet Inc as the publicly-traded entity and all its shares will automatically converted into the of shares of new parent entity with same rights. Alphabet Inc will comprise of the search engine unit and all other subsidiaries.
Highlights of the Restructuring of Google
• Under the new structural arrangement, all subsidiaries of Google will be brought under the control of Alphabet Inc which will come into effect by 2015 itself.
• Alphabet Inc will be led by Co-founder and current CEO of Google Larry Page while Sergey Brin, the other co-founder, will serve as the President of Alphabet Inc and Eric Schmidt will be executive Chairman.
• Google’s Chief Financial Officer (CFO) Ruth Porat will become CFO of Alphabet and current directors of the company will become directors of Alphabet Inc.
• Chennai born Sundar Pichai will be the CEO of new Google that is now the subsidiary of Alphabet Inc.
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