Google Creates New Corporate Structure, to Be Called 'Alphabet'

Investors like Google's (GOOG) decision to create a new corporate structure. Shares are up 7% in the pre-market. Google was growing too big and unwieldy and so it decided go create an entirely different structure. The changes are sweeping and will create and umbrella company, called 'Alphabet' that will be over all of Google's various divisions. The Google part of Alphabet will include the search business, youtube, and the android and Chrome operating systems. Those businesses generated nearly all of Google's $66 billion in revenue last year. The move will allow Google to spin off one or more of the experimental businesses, such as life sciences, self driving cars and delivery drones. Investors have been asking for some clarity in all of Google's different businesses. Google shares will convert to Alphabet shares, with ticker symbols of GOOGL and GOOG. Google CEO Larry Page will become the CEO of Alphabet. 4th quarter results will show the new structure.