Google one of the world’s largest technology Companies is set to be rolled into a new entity called Alphabet.
A filing with US authorities reveals that the new entity
which will own Google will be run by Google founder Larry Page while the big
search Company will be run by Sundar Pichai who becomes the new CEO of Google.
A letter sent by Larry Page with the regulatory filing
reveals that Alphabet will be “a collection of companies,” the largest of which
will be Google. Mr. Page will be Alphabet’s chief executive, with Google
co-founder Sergey Brin as president and Eric Schmidt as executive chairman.
Shares of Google increased about 4% in recent after-hours
According to a regulatory filing with a letter from Chief
Mr. Pichai, was previously was in charge of product and
engineering for Google’s Internet businesses.
“It is clear to us and our board that it is time for Sundar
to be CEO of Google,” Mr. Page said in the letter, noting that Mr. Pichai “has
really stepped up since October of last year, when he took on product and
engineering responsibility for our Internet businesses.”
Ruth Porat, who was the chief financial officer of Google,
will be Alphabet’s CFO.
In the letter, Mr. Page called Alphabet a “collection of
companies,” the largest of which is Google. He said the new Google will be
“slimmed down” compared to its current form, with companies that are “pretty
far afield of our main Internet products” contained in Alphabet rather than
Google. This includes health efforts like Life Sciences and Calico, which will
each have its own chief executive. It will also include the X lab and Wing, its
drone delivery effort.
“Fundamentally, we believe this allows us more management
scale, as we can run things independently that aren’t very related,” said Mr.
Alphabet Inc. will replace Google Inc. as the publicly traded
entity and all shares of Google will convert into Alphabet shares.