Google has announced it is to create a new parent company called Alphabet Inc.
Under the surprise restructuring, Google will retain its best-known businesses, such as search, YouTube and Android, whilst newer assets, including Google’s investment, smart-home and research divisions, will be run under Alphabet.
Google’s co-founder and current CEO, Larry Page, said that the move would create a “cleaner and more accountable” structure for what had become a diverse group of businesses.
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes,” he said in a blog post.
“But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”
Page, who is set to become chief executive of the new company, added that Alphabet companies should have independence and develop their own brands.
Google’s current product chief, Sundar Pichai, will become the new CEO of Google, while fellow co-founder Sergey Brin will become president of Alphabet.
Eric Schmidt, the current Google chairman, will be executive chairman of the new holding company.
