Google as we knew it will no longer exist. The company is undergoing a reorganization under a new structure called Alphabet. Alphabet will be run by Google's co-founders with Larry Page as CEO and Sergey Brin as Chairman.
The new holding company will include all of Google's current properties, and the largest of course will be Google itself. Sundar Pichai will be the CEO, having been promoted from his current role (Senior Vice President).
Google has reportedly shrunk slightly to make way for the new company, which will focus on areas related to new developments and which will be different from Google's online activities.
Page cites as examples projects such as Life Sciences, which develops various products such as glucose-sensing contact lenses, the Calico project, which studies the factors that affect the lifespan of organisms, and the X Lab, which deals with Google's self-driving cars, all will become separate companies under the Alphabet umbrella.
These changes will allow Google Alphabet to better manage unrelated products and sectors.
Alphabet will also reportedly replace Google as a publicly traded company. All Google shares will automatically convert into the same number of Alphabet shares, and Google will become a wholly owned subsidiary of the new company.
Both types of Alphabet shares will continue to trade as GOOG and GOOGL on Nasdaq.
What does this mean in the long term? Theoretically, the Mountain View team will be able to focus on more ambitious projects while improving existing products, like Google proper though a more focused portfolio.
As for the need to change the name: Google is very much associated with search.
The company has long done much more. Alphabet gives Page and Brin the freedom to enter new fields without customers (and investors) questioning:
“Why would a search engine company make cars?”
