Google just announced a big restructuring of the company named as Alphabet inclusive, sending shares up about 6 percent in extended trading. After the announcement, shares of Google rose 5 percent, but have since risen even further.
Alphabet is holding company that will manage Google and all of its other products. The companies that are far afield of Google’s main Internet products (Life Sciences, Calico, Nest, Fiber, Google Ventures, Google Capital, Google X, etc.) will be under Alphabet. Google’s main business will include searching, ads, google-maps, apps, YouTube and Android, as well as the related technical infrastructure.
Clearly, investors like this smart move of Google.It basically prints money with its advertising business, has seen its revenue growth somewhat slow down. So a shakeup seems like a welcome change to investors for the company, which is looking for the future of its business with projects that go beyond its search business.
As part of the restructuring, it’ll theoretically also be easier to track which parts of Google’s business are making money and which aren’t.
Google CEO(Sunder Pichai) and co-founder Larry Page will be the CEO of Alphabet. Sergey Brin, co-founder of Google, will serve as Alphabet’s president and Eric Schmidt will be chairman.
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