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Google Group Completes Restructuring

Adams Bamidele by Adams Bamidele
September 5, 2017
in Technology
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Alphabet, the parent company of tech titan Google, has finally completed the restructuring process it began in 2015 with the creation of new holding company XXVI Holdings Inc.

The formation of the new holding company gives Alphabet the ability, legally, to separate Google from subsidiaries, such as its self-driving unit Waymo, its AI division DeepMind and medical device and health data firm Verily, a filing with the Federal Communications Commission revealed.

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The filing, which was spotted by Bloomberg, revealed that these other subsidiaries known as “other bets” will now be on the same legal footing as Google.

Google, as part of the changes will change from a corporation to a limited liability company (LLC).

“As a result of the corporate reorganization, Alphabet and Google will be able to operate in a more efficient, economical, and transparent manner, allowing the companies to concentrate on their revenue generating activities,” the company said in the filing.

Alphabet Inc. replaced Google Inc. in August 2015 as a publicly-traded company. Larry Page runs Alphabet as CEO with the help of his Google co-founder Sergey Brin, who took the title of president.

“Alphabet is about businesses prospering through strong leaders and independence,” Page wrote in a blog post at the time. “In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well.”

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