Following its first announcement in the summer, Google is now officially a subsidiary of new parent company Alphabet Inc. An expert believes the restructuring would bring more transparency for investors.
Tech Times reported last week that Alphabet has been listed as an IPO with the Securities and Exchange Commission. It will continue to trade under the names GOOGL and GOOG.
Sundar Pichai will continue to head Google - now focusing on the online search giant's core businesses such as Android, YouTube and online search, among others. Larry Page and Sergey Brin will head Alphabet as CEO and President, respectively.
In a statement, Page explained that "companies that are pretty far afield of [their] main internet products" will also be part of Alphabet. Such products include Calico (focused on longevity), Life Sciences (glucose-sensing contact lens), Google X (self-driving cars, drone deliveries) and investment arms Google Venture and Google Capital, among others.
"This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google," Page said.
The Alphabet CEO also explained the new company's name.
"We like 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!"
According to Forbes, investors aren't fond of Google's tendency to take money from its core businesses to spend on their "long-shot projects" which is why the restructuring is good news.
"The announcement that Google will reorganize itself into a holding company structure is a strong step to delivering on the promise of openness and more shareholder-friendly structure laid out by Page and new CFO Ruth Porat - the main focus of investors," SunTrust analyst Robert Peck told the website.
"Post the transition, while we still may not have sufficient details by product line, we believe the overall cost structure and leverage potential should be clearer."
Following the Google Alphabet announcement, Forbes said the company's stock rose more than six percent.
