Google to be part of new holding company
<p>This Jan. 3, 2013 photo shows Google's headquarters in Mountain View, Calif. Google announced Monday it is changing its operating structure and will become part of a holding company called Alphabet. </p>
SAN FRANCISCO (AP) - One of tech's biggest names, Google, is reorganizing under a new moniker - "Alphabet" - in a move underscoring its founders' ambitions to pursue ventures far beyond the company's Internet search core, from self-driving cars to cutting-edge medical research.
It will still use the Google name for its popular Internet search engine, mapping service and related products. But CEO and co-founder Larry Page said Monday the creation of the new holding company called Alphabet will provide more independence for divisions like Nest, which makes Internet-connected home appliances, and Calico, which is researching ways to prolong human life.
Analysts said the move may also be a nod to Wall Street demands for more fiscal accountability: As part of the reorganization, Page said the company will begin reporting financial results by segments. That should give a clearer picture of how Google's core Internet business is performing, separate from other ventures, said analyst Colin Gillis of the investment firm BGC Partners.
"They promised to give us more information," Gillis said. "Now we'll get a chance to see."
Google reported more than $14 billion in profit on $66 billion in sales last year, most of it from lucrative Internet advertising, while other ventures have required large investments without showing immediate returns. The company's stock has surged in recent weeks after a new chief financial officer announced other moves to rein in corporate spending.
The reorganization also cements the rise of longtime Google executive Sundar Pichai, who will become CEO for the core Google business.