Google cofounder Larry Page announced an unexpected and massive restructuring of the company in a blog post on Monday afternoon. Moving forward, Sundar Pichai is the new CEO of Google and Alphabet, the new and larger holding company above Google, is where Sergey Brin and Larry Page will be moving to.
While Google will maintain control over Android, search, YouTube, apps, maps, and ads, Brin and Page at Alphabet will now have control over Calico, Nest, Google Ventures, Google X, Google Capital, and Google Fiber. Under the new organization, each of the operations under Alphabet will have its own CEO and leadership team.
The new organization will also have financial effects as detailed in a filing with the SEC. All Google shares will now be traded as shares of the newer Alphabet holding company. After the post was published, shares of the company jumped four percent.
The announcement came as a surprise to not only Wall Street but to also most of the tech world as well. The new organization separates Google’s traditional products from its more ambitious ones. A shift that has been noticed over the years and Brin and Page have become more interested with new projects made in their Google X Labs or outside funding.
While Red Shark Digital is focused on custom Wordpress solutions, SEO, and mobile app development, the news has large implications for everyone in the digital space as Google is an industry leader in search and small business tools.
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