The Courier-Mail

Google spells out reason for change

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ONE of technology’s biggest names, US internet giant Google, is reorganisi­ng under the new moniker “Alphabet” as it attempts to branch out from its search-engine roots.

The move underscore­s the ambitions of Google’s founders to pursue ventures including self-driving cars and cuttingedg­e medical research.

It will still use the Google name for its ubiquitous internet search engine, mapping service and related products.

But CEO and co-founder Larry Page said the creation of the new holding company called Alphabet would provide more independen­ce for divisions such as Nest, which makes internet-connected home appliances, and Calico, which is researchin­g ways to prolong human life. Analysts said the move may also be a nod to Wall Street demands for more fiscal accountabi­lity.

Google reported more than $US14 billion in profit on $US66 billion in sales last year, most of it from lucrative internet advertisin­g, while other ventures have required large investment­s without yielding immediate returns.

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