Google has Become a Subsidiary of Conglomerate Alphabet

Google's decision of ALPHABET

Today, CEO of Google, Larry Page announced the beginning of a significant restructuring of the company and his resignation. The search giant ceases to be an independent company and will be part of the new conglomerate - Alphabet. This structure will combine the different companies in different areas - health, energy and information technology.

Alphabet

As co-founder of Google wrote in the official blog, the company has ceased to meet the ambitions of its own, which are not limited to classical search and advertising technologies. Many projects that solve the problem is not quite standard, did not feel appropriate to the structure of Google, so the Board of Directors decided to set up a new company - Alphabet. The delegation will include the company with its own management and a fair amount of autonomy. Google will now be, as they say, the first among equals. 

Because of its composition will be withdrawn projects such as Google X laboratory , with its advanced development, start-up Nest with devices for smart homes, Fiber project to provide high-speed Internet access and other units. Control over the "bloodless" Google Sundar Pichai take that until today actually , and so led all client products company. Larry Page will head the conglomerate Alphabet for the CEO position and the other co-founder - Sergey Brin - will become president of the new company.

It is not clear how serious changes in the management structure will affect the search Corporation, and it is unclear whether the conglomerate Alphabet ensure the integration between products from different independent companies with their own management and business plans.According to Mr. Page, he would like to see in each new company under the wing Alphabet control the same high level, who would be able to bring it to the level of the largest "daughters" - Google.

Further details of the changes will be communicated to investors during a conference call on the results of the quarter, but it is known that all Google shares will be converted into shares of Alphabet. The securities market has not yet reacted to the news due to the fact that the stock exchanges are closed, but poslerabochee session of the company's shares rose 6%.