Alphabet to replace Google as stock market entity
Alphabet will replace Google as the publicly-traded entity on the Nasdaq stock exchange, after US tech giant Google announced overnight that it would rebrand itself with the creation of a new umbrella company.
ALPHABET-A
$167.24
13:09 03/05/24
Nasdaq 100
17,890.79
12:15 03/05/24
Read more: Google rebrands as Alphabet and appoints new CEO
Google's shares will automatically convert into the same number of Alphabet shares and will hold the same rights.
The company's two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
Alphabet will soon report the earnings of Google separate from the other spinoff companies, according to the company’s regulatory statement.
Google's co-founders Sergey Brin and Larry Page said they will lead the new company as president and CEO of Alphabet respectively, while Google itself will become an operating unit under the control of a new CEO, Sundar Pichai, who had been running Android and Chrome.
Read more: Who is Google's new CEO Sundar Pichai?
"What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead," Page said in a blog post announcing the changes.
Read more: Google forgets to check @alphabet account on Twitter
He added: "In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole."
Page and Brin said the name Alphabet was chosen for two reasons; as it represents language, "the core of how we index with Google search", and because alpha-bet means "investment return above benchmark, which we strive to do".
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