Here's What You Need To Know About Alphabet

After the close of business on Friday, Google carried out its long-anticipated restructuring plans and divided itself into a host of smaller, separate businesses under one parent company called Alphabet Inc. GOOG GOOGL. Google, which houses the firm's most well known projects such as Android and Maps, became a subsidiary business running under Alphabet's umbrella.

What Does That Mean For Shareholders?

Shareholders need not worry, as the firm's class A shares and class C shares were automatically converted into the same number of class A or C shares of Alphabet. While the company's name has changed to Alphabet, the ticker symbols remained the same. Most investors are praising the decision to separate Google's individual businesses as it will give them a more thorough look at how profitable the firm's core companies are.

Related Link: Google's Alphabet Ties Everyone To A 'More Singular Cause'

CEO's All Around

Google's former CEO Larry Page has taken over to head up Alphabet, but each of the company's businesses will have its own CEO running individual operations as well. Google will be headed up by Sundar Pichai, who joined the firm back in 2004.

Under this new structure, Alphabet's subsidiary businesses like Nest, a home products arm, and Fiber, a brand that focuses solely on internet, will all be run separately by their own teams of executives. This structure is expected to make the firm more transparent and allow each of the company's projects more flexibility.

What's In A Name

Alphabet has reportedly dropped Google's signature "Don't be evil" tagline from its code of conduct, but the public probably won't hear much from the renamed company following this transition. Instead, Google will continue to be the firm's the customer facing brand with Alphabet fading into the background.

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