Google Inc (GOOGL.O) announced a new operating structure Monday, creating a holding company called Alphabet to encompass the search engine unit and other subsidiaries.
Alphabet Inc will replace Google as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google,” Larry Page said in a blogpost.
The unusual structure, announced after the close of stock market trading, leaves Page in charge of the company as CEO. Fellow co-founder Sergey Brin will become president of Alphabet, and Eric Schmidt will be executive chairman.
Sundar Pichai will be the CEO of Google Inc, while current Google Chief Financial Officer Ruth Porat will become CFO of Alphabet. Google’s current directors will become directors of Alphabet.
Page said “Alphabet is mostly a collection of companies, the largest of which is, of course, Google.”The company said the new arrangement will take effect “later this year.”