Friday will be the last day Google will operate without a parent company. The company, at the close of markets, will now be known as Alphabet. It will be traded under that name beginning Monday.
Computer World reports that Google will now be a business unit operating under Alphabet, as its umbrella. Google will still focus on internet business, such as its search engine, YouTube, and Android. The change was officially announced on its investor page.
The announcement came originally in August, when Google stated they were creating a parent company, with Google operating as one of its subsidiaries. Alphabet will be replacing Google as the name publicly traded, while shares will remain the exact same. The ticker symbol, GOOG, will remain in place.
Google is not the only subsidiary. Alphabet will also be the umbrella company for Google X, the research department of Google responsible for the driver-less car. It will now be its own business. Capital and Ventures will focus on funding startups.
Prior to the reorganization, all projects fell under Google. By making Google its own company, focused on internet business, it can step away from the less-profitable research projects. By separating the research section, new focus can be put on those projects. By not having to decide between profitability, and innovation, the company can put the right amount of focus on both.