Google to restructure into new holding company called Alphabet
After the stock markets closed on Monday, Google’s representatives announced a radical shake-up. Google is becoming a subsidiary of a new holding company, Alphabet. The reasoning behind it, as explained by Google co-founder Larry Page, is that Google is no longer just a search company and that they have gotten into several new venture businesses, which were financially supported by the successful search engine. Still, under a new structure, “slimmed down” Google will continue to represent roughly 90% of Alphabet’s total revenues, while non-Google divisions will represent 10% or less of total revenues. In addition, this move is supposed to bring a clearer picture to investors when assessing the core business and its other assets.