Today, Larry Page made a rare blog post on the Official Google Blog. He announced a few things. In the fact that they are reorganizing the company a bit, and they will be announcing earnings for each part of Google separately starting in Q4. Larry Page is stepping down from his CEO position, and will be working with Sergey Brin to oversee the "Alphabet" which includes Google and a few other affiliated companies. In stepping down, Larry has named Sundar Pichai as the new CEO of Google. Alphabet is a new company for Page and Brin, where Page will be serving as CEO and Brin as the President. Alphabet includes Google X and Calico. But they are splitting up a few of the companies inside Google. Google will keep of Ads, Google Maps, Search, Google Play Store, YouTube and Android. Arguably the biggest parts of Google. While the rest will fall under the larger umbrella that is Alphabet.
"Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG."
Why did Larry Page and Sergey Brin decide to call this new company, Alphabet? Well Page did also explain that in his blog post today. Stating, "a very exciting new chapter in the life of Google -- the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity's most important innovations, and is the core of how we index with Google search!"
Since Andy Rubin stepped down as head of Android and Sundar Pichai was given that role, the board of directors have continued to give him more and more responsibilities and he's continued to excel in what he's been doing. Which the board of directors as well as the two founders, Larry Page and Sergey Brin have definitely noticed how Sundar has been evolving. Sundar has pretty much been acting as the CEO of Google for a bit now, at least in the public eye, so now he will officially be the company's CEO.