August 10, 2015 5:45 PM EDT Google’s stock is up about 5% in after-hours trading Monday after company co-founder Larry Page announced the search giant will become a subsidiary of a new umbrella company called Alphabet.
Alphabet will become the publicly-traded entity, Page said. Current holders of Google stock will see their shares automatically converted into shares of Alphabet. Alphabet will continue to be listed as GOOG.
Page will serve as Alphabet’s CEO, while fellow Google co-founder Sergey Brin will have the role of president. Google VP of Products Sundar Pichai will take over as Google’s CEO.
MORE: Read TIME’s 2013 cover story, ‘Google vs. Death’
Here’s more from Page:
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and
Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. Alphabet is about businesses prospering through strong leaders and independence.
In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We’ll also make sure we have a great CEO for each business, and we’ll determine their compensation. In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole.
The 10 Most Ambitious Google Projects Google Driverless Car
The Google Self-Driving Car has been in the works since 2005 after a team of engineers won a grant from the U.S. Department of Defense to design an autonomous car. The project, which aims to reduce traffic accidents, has made headway in recent years as states passed laws permitting self-driving cars. Google plans a commercial release between 2017 and 2020. David Paul Morris—Bloomberg/Getty Images Google has been testing balloons which sail into the stratosphere and beam Internet down to Earth. Jon Shenk—AP Google's smart contact lenses. Google/AP Google Lively
Google Lively was a web-based virtual community space where users could design avatars, chat with one another and personalize their online hangout space. The project was discontinued after a six-month stint in 2008 after limited success. Google/AP Google Earth
Google's virtual map of the Earth allows users to tour the earth with 3-D satellite images. The project, which dates back to 2004, has already found significant applications in disaster relief. Google/AP Project Ara
Google's build-your-own-smartphone project allows users to customize their handsets to their own preferences, with the possibility of eliminating electronic waste by encouraging users to add hardware updates on their own terms. The team is working towards a limited market pilot in 2015. Bryan Bedder—Getty Images for Engadget Expand Disease Detecting Pill
Google unveiled its plans to disease-detecting ingestible pill in October, a project that'll let patients access their real-time health data to encourage preventative care. The pill will contain nanoparticles that can bind to certain cells and chemicals, with the possibility of detecting diseases like cancer in early stages. Getty Images Flying Wind Turbines
The flying windmill is the project of Makani Power, a wind turbine developer acquired by Google in 2013. The tethered airborne turbines will harness wind energy for the goal of producing low-cost, renewable energy Andrea Dunlap—Makani Power/AP Google+
Google's social networking platform launched in 2011, the most successful service after several flops at designing a Facebook competitor, like the now-retired Google Buzz. Today, Google+ boasts over half a billion monthly active users. Stephen Lam—Reuters Google Books
Google Books dates back to 2004, when Google partnered with libraries and universities to plan to digitize millions of volumes over the next several years. The project aims to make searching books as easy as searching the web. Getty Images
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