Google reorganizes and becomes Alphabet – Le Figaro

Alphabet replace Google as an entity listed company and all actions will be Google automatically converted Alphabet securities with the same rights.

Google on Monday announced a major reorganization of its structure by creating a new entity called Alphabet, will become the parent company of all Group companies to separate the core business of other internet more experimental activities.

The giant new technology seems to want to provide the means to unleash his most imaginative and ambitious projects. “This suggests that in all probability, Google will not slow the pace of his experiments such as autonomous cars. This suggests that they will really try to tranformer technological conglomerate lined with capital funds risk, “responded Michael Yoshikami, head of fund management Wealth Destination Management.

This surprise announcement after the close on Wall Street was welcomed by a jump in as nearly 7% to 708 dollars hours trading.

The new structure should enable Wall Street to get a better idea of ​​Google’s investments in projects like Google X, a secret laboratory that has produced the Google Glass glasses. “All these companies gave an impression of clutter. It may be better for them to reorganize things a little more clearly distinguishing those who run the store of those scientific projects and those that are long-paris term, “said Roger Kay, an analyst with Endpoint Technologies Associates.

Alphabet replace Google as an entity listed company and all actions will be Google automatically converted Alphabet securities with the same rights.

“This new structure will allow us to maintain a huge attention to the tremendous opportunities we have within Google,” said Larry Page, co-founder and current CEO of Google, in a statement.

Roger Kay, an analyst with Endpoint Technologies Associates, believes this new structure “a lot of sense to (his) eyes because it provides a high degree of flexibility”. “For example, if a unit performs good or bad performance, they can expand or reduce, they can create partnerships and create new companies,” he added.

In the Under this new structure, Google will retain the main activities of the group, such as Internet search, advertising, mapping, applications, operating system Android, YouTube and technical infrastructure.

Certain subsidiaries, such as Nest, the connected thermometers manufacturer, or Calico, a research laboratory on human longevity, will leave the perimeter of Google to come under the control of Alphabet. Fiber, specializing in high-speed internet, or venture capital funds and Google Google Ventures Capital will also join the new entity.

“Alphabet is essentially a corporate assembly. The main course is Google, “says Larry Page. “The new Google is a little thinner, companies are quite far of our key products on the internet are now placed within Alphabet.”

After this, Sundar Pichai, current vice president of products, will become the new CEO of Google, including all current directors will integrate the management of Alphabet.

Ruth Porat, joining Google in March from Morgan Stanley, will combine including the positions of Chief Financial Officer of Google and Alphabet.

Sergey Brin will become president of Alphabet and Eric Schmidt, chairman of Google, will be the executive chairman.

Google said that the new organization would take effect “by the end of the year.” The group, whose fiscal year corresponds to the calendar year, aims to present results by activity at the announcement of its accounts for the fourth quarter, according to Larry Page.

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