Google spells out reason for change
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.