In a blog post, Page said the new structure will make the company "cleaner and more accountable". Businesses that are "pretty far afield" of Google's main internet business will be included in Alphabet itself, such as Life Sciences (products such as glucose-sensing contact lens) and Calico (focused on longevity). The X lab for new development work and the venture capital arm will also be included in Alphabet.
The other businesses will each have a strong CEO with the independence and capital needed, with Brin and Page "in service to them as needed". The new 'Google' will be slightly smaller, with Pichai, who was named product chief already last year, serving as its CEO. As part of the new plan, Google will start reporting a breakdown of its financial results for each segment, with Google financials separate from the rest of the Alphabet businesses as a whole.
Alphabet Inc will replace Google Inc as the publicly-traded entity, and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet.
The new structure at Google follows the appointment of former Morgan Stanley executive Ruth Porat as CFO of Google earlier this year. At Google's quarterly results last month she said the company would put more focus on "resource allocation" to ensure it develops new opportunities across its wide range of businesses.
