The initiative is taken to reorganize Google operations and make accountability easier.
Google executives have revealed establishment of a new public trading company named Alphabet. The parent company contains several companies, with Google being the largest of the lot.
Also, Google is slimmed down, with all the companies that are not directly linked to Internet products and services put under the Alphabet banner.
All divisions except Android, search, YouTube, ads, apps and maps will now come under Alphabet. It will be overseeing recent projects like Google Fiber, Google Capital, and X Lab, etc.
There has also been a change in the hierarchy of company. From now onwards, every company that comes under Alphabet will have its own CEO. Sundar Pichai, who was formerly running Chrome and Android division, has been appointed as the new CEO of Google. On the other hand, Larry Page will be acting as CEO of Alphabet. Of course, Pichai will still be reporting to Page and Sergey Brin, co-founders of Google.
Alphabet has taken the position of Google as public company, getting all its shares, with the latter to now act as a subsidiary of the new company.
From Q4 onwards, Alphabet will declare financial details of Google separately from its all other companies.
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