– Google Renames Itself “Alphabet”, Stock Soars (ZeroHedge, Aug 10, 2015):
It’s long been difficult to catalogue everything that Google does, and apparently Google couldn’t keep up with anymore either because the company has unveiled a somewhat bizarre restructuring effort that will see “Google” become a wholly-owned subsidiary of a new holding company called “Alphabet.”
Google directors will become Alphabet directors, Larry Page will be the holding company’s CEO, and Page’s deputy Sundar Pichai will now be CEO of Google. Alphabet will replace Google as the publicly traded entity, Google shares will become Alphabet shares, but the tickers will remain as is – or something. Here’s Bloomberg trying to put it in perspective.
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.
Of course in today’s market, all news is good news even if it’s almost impossible to digest and evaluate, or maybe traders presume the move will be somehow “tax advantaged”, but whatever the case, the stock is soaring in AH trading.
Here’s the full statement from Google.. err.. Alphabet: