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TECHNOLOGY giant, Google, will restructure its operations separating YouTube and its search engine from its research divisions. The firm has announced a massive corporate overhaul that will see the internet giant separate its core business from its ambitious research divisions and owned by a new company, Alphabet.
Chief executive Larry Page, who co-founded Google as a university research project two decades ago, announced the creation of Alphabet, a holding company of which Google would be one subsidiary, on Monday night.
The restructuring will see the company’s founders, Page and Sergey Brin, step back from the day-to-day running of Google, with highly-respected executive Sundar Pichai taking over the core business and Page becoming chief executive of Alphabet.
Many of Google’s non-core operations, such as its life sciences division, secretive Google X research department, and Google Ventures investment arm, will be separated from the central business, which includes the Google search engine, YouTube and Android smartphone software and will retain the “Google” name.
Nest, the internet appliance company bought by Google last year, and Google Fiber, a high-speed broadband project, will also be separated, with all of the separate units owned by Alphabet.
Google’s shares rose by more than six percent in after-hours trading following the announcement. Shareholders in Google will now become shareholders in Alphabet, which will continue to be listed in New York on Nasdaq.
Page will become Alphabet’s chief executive, and Brin president. Pichai, Google’s product chief who was seen as Page’s effective number two, will take over Google itself.
The company’s two founders created Google while at Stanford University in California in the 1990s, and have retained control of the company through its history, growing it into the internet’s biggest search engine and one of the world’s most valuable companies.
Android dominates the smartphone market and YouTube is the world’s biggest video website. — the telegraph.
Online Reporter