Google has announced they are creating a new company, called 'Alphabet'

  • It's a new operating structure
  • Alphabet will replace Google as the publicly traded company
  • All shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights
  • Sundar Pichai to be CEO of Google
  • Google will become a wholly-owned subsidiary of alphabet;two classes of shares will continue to trade on nasdaq as GOOGL and GOOG
  • Google says "with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately"

Larry Page (the CEO of Alphabet):

  • "Alphabet is mostly a collection of companies. the largest of which, of course, is Google"
  • "We are also stoked about growing our investment arms, ventures and capital, as part of this new structure"

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Whats the bet this is tax (reduction) related?