Google is reorganising its corporate structure to allow founders Larry Page and Sergey Brin to focus on business interests beyond the company’s core operations.
On Monday, Page announced that they have established a new holding company known as Alphabet Inc, which will serve as the parent of Google and other businesses that have been created and acquired by the search giant.
With this setup, the two founders can devote more time to their passion of developing cutting-edge technology that can revolutionise the world, according to Jackdaw Research’s Jan Dawson and tech expert Ben Thompson.
Google’s independent affiliates under this new structure include smart appliance maker Nest; high-speed internet provider Fiber; Google X, which is known for its self-driving cars; and Calico, a firm researching ways to extend the human lifespan.
“In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well,” Page wrote in a blog post.
Upon completion of the restructuring, Google Inc will be helmed by Sundar Pichai. Brin and Page will take on the respective roles of president and chief executive officer of the holding company, while Eric Schmidt will become its executive chairman.
“Alphabet Inc. will replace Google Inc. 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,” he added.