Breaking down the new Alphabet

Google logoYesterday, most everyone found out that Google, the Internet search giant, had formed itself a new parent company called Alphabet. The official announcement came in a blog post from Google’s co-founder Larry Page. Under the new Alphabet umbrella, Google’s core Internet business will stay Google while some of its other businesses will split off to become their own companies. According to Wired Magazine, here’s how it breaks down:

Businesses that will stay a part of Google:

  • Search
  • Advertising
  • Maps
  • Apps
  • YouTube
  • Android

Businesses spinning off from Google to become separate companies under Alphabet:

If you own Google stock, you were probably happy last night, as the news sent shares up as high as seven percent in after-hours trading. Yesterday’s SEC filing explained what will happen to Google stock in the formation of the new umbrella company:

“Stock certificates previously representing shares of a class of Google stock will represent the same number of shares of the corresponding class of Alphabet stock after the Alphabet Merger. Following the consummation of the Alphabet Merger, shares of Class C Capital Stock and Class A Common Stock will continue to trade on the NASDAQ Global Select Market under the symbol “GOOG” and “GOOGL” respectively.”

It’s big news from this big company, and we look forward to seeing the results of the creativity and experimentation released in the restructuring.

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