In shock move, Google announces new parent company Alphabet
The search firm wants to separate its core businesses from experimental products like Google Glass and driverless cars
Google announced a surprise overhaul of its operating structure on Monday, creating a holding company called Alphabet to pool its many subsidiaries and separate the core web advertising business from newer ventures like driverless cars.
The move appeared to be an attempt by the search engine giant to focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments.
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"It suggests that in all likelihood, Google is not going to slow the pace of their experimental processes like self-driving cars," said Michael Yoshikami, head of Destination Wealth Management, which has US$1.5 billion under management.
The surprise news sent shares of Google up as much as 7 per cent to US$708 in after hours trading.
| Businesses that will stay part of Google |
|---|
| Search |
| Advertising |
| YouTube |
| Maps |
| Android |
| Apps |
The new structure could also give Wall Street better insight into Google’s investment in moonshot projects like Google X, a secretive lab that produced the unpopular Google Glass wearable device.