In an announcement on their Investor Relations page, tech giant Google declared that it will officially become "Alphabet" - finalizing and cementing its long-awaited reorganization.
It may be recalled that last August, Google revealed its plans to restructure the business, as per CNN Money. In the same report, CNN Money notes that there will be no major operational changes noticeable in Google's restructuring.
"At its most basic level, Google is just renaming itself 'Alphabet' and creating a subsidiary business called 'Google.' The new Google will continue as the consumer-facing brand and will run all the products you've heard of, including search, Android, YouTube, Maps and Google Apps," the CNN report clarifies.
A statement from a Google spokesperson as quoted by Wired indirectly seconded the report: "There will be no change to any day-to-day operations." The representative continued, "just a legal filing to officially establish the structure."
The said organizational "reformation" is akin to Warren Buffett's Berkshire Hathaway (BRKA), according to CNN Money - where each of the "subordinate" business will have its own head or CEO, for that matter. These CEOs will all be reporting to former Google chief, and now Alphabet CEO, Larry Page - who notably admitted to being a fan of Buffet's managerial style.
CNN Money furthers that in the new organizational chart, Google co-founder Sergey Brin will take over as Alphabet's President along with Page who will serve as the parent company's CEO, as previously stated.
Google will welcome new CEO Sundar Pichai who is reported to have a stellar professional career in the company. "He's a well-liked executive who's had a meteoric rise since he joined Google in 2004. He led the Google Toolbar team, then Chrome. He was then given control of Android and eventually every Google product not named YouTube," the CNN Money report said.
CNN Money divulges that the company's investors were the main reason the restructuring was established. There was a growing anxiety among shareholders regarding Google's funding of "moonshot" investments which might not have an ROI. "Since 90% of Google's sales came from advertising, Page was criticized for not devoting more of his time to search. Now, Google will be a separately run company without its CEO worrying about those 'side projects,'" to quote the CNN Money report.
Starting Monday, Google will be trading as Alphabet but will, however, retain the same name - "GOOGL"
Read Google's full statement here.