Google has made a number of structural changes, setting up a new parent company and changing its CEO.
The internet-giant announced the changes on a blog post from current CEO Larry Page. The statement revealed that a new parent company named Alphabet has been set up in order to ‘slim down’ the company and allow better management of subsidiaries unrelated to Google’s core business.
Page also revealed that he and co-founder Sergey Brin would take up roles at Alphabet, leaving current product chief Sundar Pinchai to take up the position of Google CEO.
The businesses separated off from the Google business to become Alphabet subsidiaries include; home automation company Nest Labs, research and development biotech business Calico, fibre broadband arm Google Fibre and new technologies company Google X, which has been responsible for products such as Google’s driverless car and Google Glass. The online brand also took the opportunity to separate off its venture capital businesses Google Venture and Google Capital.
Explaining how Alphabet would function in practice, Page said: ‘Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We'll also make sure we have a great CEO for each business, and we’ll determine their compensation. In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole.’
In April, Google announced it was entering the MVNO market in the US with a service known as 'Project Fi'.