Google has announced major restructuring as it creates a new holding company called Alphabet Inc.

Google CEO Larry Page has announced that the Internet seaching giant is launching a new parent company, Alphabet, Inc, which will replace Google as the publicly traded overarching entity.

Google, Inc. will make part of it with Sundar Pichai, former Google’s product chief, at the helm.

Under the rebranding, Google will retain its best-known services and apps and even Android operating system.

Google founder Larry Page said the new body would create a simpler structure for what had become a diverse group of businesses.

“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google,” he said in the blogpost.

“Our company is operating well today, but we think we can make it cleaner and more accountable,” he said. “The whole point is that Alphabet companies should have independence and develop their own brands.”

“In general, our model is to have a strong CEO who runs each business, with [Google cofounder] Sergey [Brin] and me in service to them as needed,” Page wrote.

He went on adding that the holding company isn’t meant to be a consumer brand unto itself.

“For Sergey and me this is a very exciting new chapter in the life of Google—the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search!”

“We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products—the whole point is that Alphabet companies should have independence and develop their own brands.”

The company’s current business chief, Omid Kordestani, will change his post and become an adviser to Alphabet and Google. Ruth Porat, chief financial officer of Google, will remain in that position and will also perform functions of chief financial officer for Alphabet.

Other entities under Alphabet will include Google Fiber, a provider of ultrafast Internet service. There will also be two financial businesses, Google Ventures, the venture capital arm, and Capital, which does private-equity-like deals.

Google X, which includes projects like self-driving cars, a drone delivery service and an attempt to make Internet-connected balloons, will be managed separately and run by Sergey Brin.

BGC Partners’ investment analyst Colin Gillis said the new structure should give investors greater clarity on strategy and how much Google was spending on new products.

“There’s been a lot of speculation about how much money they put into these other ventures,” Mr Gillis told Bloomberg. “That will come to an end. This also gives them the structure to add in another business line if they were to acquire something. The mechanism is in place.”

The name Alphabet was chosen for two reasons, Page exlained. It represents language, “the core of how we index with Google search”, and because Alpha-bet means “investment return above benchmark, which we strive to do”.

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