Google’s empire on Internet and technology took a new twist with the announcement that Alphabet was taking over as the parent company. The tech titan, starting as an Internet search engine, will separate the Internet businesses, which includes mobile operating system Android, from other ventures, such as their health and self-driving car initiatives.
Co-founder Larry Page, who has acted as CEO since its founding in 1998, announced the restructuring of the search giant in a statement on August 10.
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes,” Page said in the statement. “But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”
Along with the restructure, Page named Sundr Pichai as CEO of the Alphabet subsidiary that will take over the Google name. This slimmed-down version will focus on the Android OS, Google Now, Google Photos and other similar Internet-related ventures.
“I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations,” Page said. Stepping down as CEO of Google, Page will take over as CEO of the newly-created Alphabet, with his co-founder Sergey Brin serving as President of the new corporation.
Projects that were not closely related to its internet business, such as Google Capital, Nest, Google X and Google Ventures, will continue to operate as separate companies with their own chief executives under the Alphabet umbrella. Alphabet will also take over Google’s spot on NASDAQ, using the GOOG and GOOGL symbols. Shares of Google were up nearly five percent after news broke of the change.