(MENAFN- Qatar News Agency) Google surprised the technology world on Monday by announcing it was dividing its different business under a new parent company to be called Alphabet, Inc.
Alphabet will replace Google as the company traded on stock exchanges. Google becomes just one of a collection of companies that will now be controlled by Alphabet, though it will be the largest.
"Fundamentally, we believe this allows us more management scale, as we can run things independently that aren't very related," said Larry Page, a Google co-founder who will be CEO of the new company. "We will rigorously handle capital allocation and work to make sure each business is executing well." Google started in 1998 as simply an internet search engine. Monday's move shows that it has so many different businesses that a holding company was needed.
Among Alphabet's other companies will be Life Sciences, previously Google's health technology company; Nest, which makes computerized thermostats; and Calico, a company that is trying to increase human life expectancy.
Under Alphabet will also be two financial firms, Google Ventures and Capital, which arranges private-equity deals. Google X will also become a separate company under the Alphabet umbrella. It is working on making self-driven cars and a drone-delivery service.
"We liked the name Alphabet because it means a collection of letters that represent language, one of humanity's most important innovations, and is the core of how we index with Google search," Page said in a blog post that announced the new company.
The new Google subsidiary will concentrate on the search engine, maps, YouTube and Gmail.
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