Page 23 - ARUBA TODAY AUG 12

TECHNOLOGY A23
Wednesday 12 August 2015

Google forms a new holding company, ‘Alphabet’

This Thursday, Jan. 3, 2013, photo shows Google’s headquarters in Mountain View, Calif.

BRANDON BAILEY dependence for divisions chief financial officer sig- in 2013; Nest, which Associated Press
AP Technology Writer like Nest, which makes naled some trims in corpo- Google acquired in 2014;
SAN FRANCISCO (AP) — Internet-connected home rate spending. Fiber, which is building The new structure could
Google is creating a new appliances, and Cali- The reorganization also high-speed broadband make it easier for Google
company to oversee its co, which is conducting cements the importance networks in several cities; Inc. to sell off some of its
highly lucrative Internet cutting-edge health re- of Pichai, who is viewed by and Google X , the re- unrelated businesses, or
business and a growing search. many as a potential suc- search lab responsible for buy new ones, analysts
flock of other ventures, Analysts said the move cessor to Page. Google’s Google’s self-driving car said. Page has suggest-
including some — like may also be a nod to Wall other co-founder, Sergey venture and previously ed previously that he is a
building self-driving cars Street demands for more Brin, will be president of developed its contro- fan of Warren Buffett, the
and researching ways to fiscal accountability: As the new holding compa- versial Internet headset, famed financier and CEO
prolong human life — that part of the reorganization, ny. With the reorganiza- known as Glass. of Berkshire Hathaway.
are known more for their Page said the company tion, Page signaled that Alphabet will also over- Buffett’s conglomerate
ambition than for turning will begin reporting finan- he wants to give more see Google Ventures and owns more than 80 subsid-
an immediate profit. cial results by segments. authority to CEOs of the Google Capital, two cor- iary companies and lets
The new company will That should give a clearer companies that will be porate investment entities each operate with sub-
be called “Alphabet,” picture of how Google’s part of the new entity that focus on early- and stantial independence.
Google CEO and co- core Internet business known as Alphabet. growth-stage startups. Google said its chief finan-
founder Larry Page an- is performing, separate “Our company is op- Google’s YouTube video cial officer, Ruth Porat, will
nounced Monday. Page from other ventures, said erating well today, but division, however, will re- hold the same title for both
said he’ll be CEO of the analyst Colin Gillis of the we think we can make main part of the core Google and Alphabet.
new holding company, investment firm BGC Part- it cleaner and more ac- business under Pichai, Once the reorganization is
while longtime Google ex- ners. countable,” he wrote. although Page made a complete, the company
ecutive Sundar Pichai will Google reported more “We believe this allows us point of praising its chief, says its two existing classes
become CEO of Google’s than $14 billion in profit more management scale, longtime ad executive Su- of publicly traded stock
core business, including on $66 billion in sales last as we can run things inde- san Wojcicki. Google his- will continue to trade on
its search engine, online year, most of it from lucra- pendently that aren’t very torically has not reported the Nasdaq exchange
advertising operation and tive Internet advertising, related.” earnings separately for under the ticker symbols
YouTube video service. while other ventures have Businesses that will op- the YouTube business. “GOOG” and “GOOGL.”
While the company will required large invest- erate separately under “It may not be quite ready Both classes of the Moun-
still use the Google name ments without showing im- the Alphabet umbrella yet,” Gillis said of YouTube. tain View, California, com-
for those core services, mediate returns. The com- include Calico, which “Maybe they’re going to pany’s stock rose more
Page said the new struc- pany’s stock has surged in Google established to do a little polishing and than 6 percent in after-
ture will provide more in- recent weeks after a new conduct health research work on profitability first.” hours trading following the
announcement Monday
afternoon.q