Google Inc. announced a surprise overhaul of its operating structure on Monday, creating a holding company called Alphabet, Reuters reported.
Alphabet will pool the firm’s many subsidiaries and separate the core web advertising business from newer ventures like driverless cars.
The move appeared to be an attempt by the search engine giant to focus on its more creative and ambitious projects.
Investors cheered the potential for more financial disclosures of its disparate business segments. The surprise news sent shares of Google up as much as 7 percent to US $708 in after-hours trading.
“They are aware that they’ve got this hodgepodge of companies,” said Roger Kay, an analyst at Endpoint Technologies Associates.
“Maybe it’s better to sort them out a bit and make it clearer which ones are bringing in the bacon and which ones are science projects and which ones are long-term bets.”
Under the new corporate structure, the Google unit will encompass the core search engine as well Google Maps and YouTube.
In addition to Google X, which developed the unpopular Google Glass, the company’s new ventures such as Calico, which focuses on longevity, and connected home products maker Nest will be managed separately.
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