Google spells out new vision with holding company

Google, which has been expanding far beyond its original business of internet search advertising, is changing its operating structure by creating a new holding company called Alphabet.

The company says its new structure will give more independence to many of its wide-ranging and ambitious projects.

Under the plan, Alphabet will comprise the core Google business, including internet search, mapping and YouTube, along with newer businesses that will be managed separately, such as Google Fiber, Nest and the investment arm Google Ventures. GoogleCEO Larry Page will become chief executive of Alphabet, with his co-founder Sergey Brin serving as president.

Long-time Google executive Sundar Pichai will be CEO of the core Google business.

The change may give investors a clearer picture of how much Google is spending on some of its newer ventures, like its effort to build a self-driving car, develop a glucose-sensing contact lens or install high-speed internet fibre networks in a number of US cities, said Colin Gillis, an investment analyst at BGC Partners.

The US company’s stock was up about 5% in after-hours trading following the announcement.