(Bloomberg) -- Google Inc. is changing its corporate structure to separate its search, YouTube and other Web companies from its research and investment divisions. The shares rose in late trading.
Alphabet will be the name of what will effectively be a new holding company, the Web company said in a blog post Monday. It will include Google Inc. and Calico, a separate unit that includes Google Ventures, Google Capital, Google X and other subsidiaries.
Larry Page will be Alphabet’s chief executive officer, while co-founder Sergey Brin will be president. Ruth Porat will be chief financial officer. Sundar Pichai, Page’s deputy, will be promoted to become CEO of Google Inc., which generates the bulk of Google’s $60 billion in annual revenue.
Google is adopting this structure in order to make clearer the difference between its main business and longer-term endeavors, as Page and Brin take on more strategic roles, while leaving operational management to trusted deputies.
“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes,” Page wrote in the post. “Our company is operating well today, but we think we can make it cleaner and more accountable.”
Shares of Google fell less than 1 percent to $663.14 at Monday’s close in New York. The stock is up 25 percent this year, with much of the gains coming after the company reported quarterly results last month.
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