UPDATE: Aug. 10, 2015, 5:40 PM EDT
SAN FRANCISCO (AP) — Google, which has been expanding far beyond its original business of Internet search advertising, is changing its operating structure by creating a new holding company called Alphabet.
The company says its new structure will give more independence to many of its wide-ranging and ambitious projects.
Under the plan announced Monday, Alphabet will be comprised of the core Google business — including Internet search, mapping and YouTube — along with newer businesses that will be managed separately, such as GoogleFiber, Nest and the investment arm Google Ventures.
Google CEO Larry Page will become CEO of the new entity, with his co-founder Sergey Brin serving as president. Longtime Google executive Sundar Pichai, who has taken on increasingly important roles at the company in recent years, will be CEO of the core Google business.
The change may give investors a clearer picture of how much Google is spending on some of its newer ventures, like its effort to build a self-driving car, develop a glucose-sensing contact lens or install high-speed Internet fiber networks in a number of U.S. cities, said Colin Gillis, an investment analyst at BGC Partners.
But it may not signal much change in the current management structure, since Pichai has already been overseeing many of Google’s core operations, Gillis said.
Google Inc. said its new chief financial officer, Ruth Porat, will hold the same title for both Google and Alphabet. Once the reorganization is complete, 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.
___
Tali Arbel contributed reporting from New York.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
So this means WHAT for the future of Google, Youtube, etc.? I am leery of holding companies, as leery and Teddy Roosevelt was of trusts. Please explain wha this means.
Does this mean that Google can make mistakes and not be sued?
Does it mean that the holding company cannot be sued for misinforming the world on the internet?
We need some actual research, legal scholarship, and history of “holding companies” to make any sense of this click you brought us to.
Words fail me.
I was wondering if there might be a tax-avoidance aspect to this.
Keep searching…just not with google!
On a barely related subject has anyone had trouble with Chrome lately. I recently had a Windows 8 laptop using Chrome and Chrome died. After trying several things I uninstalled Chrome but now I can’t get it to down load to try reinstalling. My other machine laptop with Windows 7 has had no problems using Chrome.