Google forms a new holding company, 'Alphabet'

Google is creating a new company to oversee its highly lucrative Internet business and a growing flock of other ventures, including some - like building self-driving cars and researching ways to prolong human life - that are known more for their ambition than for turning an immediate profit.

The new company will be called "Alphabet," Google CEO and co-founder Larry Page announced Aug. 10. Page said he'll be CEO of the new holding company, while longtime Google executive Sundar Pichai will become CEO of Google's core business, including its search engine, online advertising operation and YouTube video service.
     
While the company will still use the Google name for those core services, Page said the new structure will provide more independence for divisions like Nest, which makes Internet-connected home appliances, and Calico, which is conducting cutting-edge health research.
     
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.
     
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 signaled some trims in corporate spending.
     
The reorganization also cements the importance of Pichai, who is viewed by many as a potential successor to Page....