Google surprised the technology industry yesterday with a major corporate restructuring. The search giant now has a new parent company called Alphabet, which will be run by Google founders Larry Page and Sergey Brin. Alphabet's largest subsidiary will still be called Google, and it will be run by new CEO Sundar Pichai. The Android mobile development platform will still be part of Google, as will Google Search, YouTube, Gmail and Google's advertising businesses.
Many of Google's other divisions like Google X, Nest Labs, Google Ventures, Google Fiber, Calico and Sidewalk Labs will become separate subsidiaries, all owned by Alphabet. Larry Page says that the change "frees up time for me to continue to scale our aspirations."
Investors seem to approve of the restructuring as the stock price surged after the announcement.