Google announced the creation of a new company called Alphabet, with Google founders Larry Page serving as CEO and Sergey Brin as president. “We do all of our business online, and Google could really affect us”, said Jennifer Blakeley, who in 2008 registered Alphabet Photography as an online retail store selling printed photos of buildings and natural formations that look like letters.

Yesterday, Google birthed Alphabet Inc. which became the umbrella organisation for a collection of companies. “So we are creating a new company, called Alphabet (http://abc.xyz)”, Alphabet CEO Larry Page announced in a blog post on blogspot-where else-on Monday.

“Investors will probably be happy because the new structure gives management more flexibility to manage the assets”, said Kay, noting that the revamp will also help Google become a leaner business.

All of Google shares will automatically convert to the equivalent number of Alphabet shares following the reorganization.

Sundar Pichai, will serve as Google’s new CEO and the largest of those companies will be a “slimmed-down” version of the old Google. Sundar Pichai, senior vice president of product, will be CEO of the Google segment. And it has long since expanded beyond its core business as a search browser, becoming one of the biggest and most far-reaching tech companies on the planet. The company’s two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.

“There is certainly a strong case for the move providing more protection to the Google brand”. Chief financial officer Ruth Porat will continue to act in her current capacity for both Google and Alphabet. The move is also savvy in the sense that the structure allows risk mitigation via isolation-troubles at, say, the drone biz can now be isolated from the ongoing growth engine of Google and YouTube’s Internet advertising business. And, as we all know, Google has branched out into the auto industry, most notably with its work on the driverless vehicle.

Google’s previous set-up reportedly does not emphasise or allow new waves of product development as compared to what Alphabet can do.

Together, Page and Brin want to ensure each of the spin-off businesses will have adequate funding and suitable CEOs. Page and Brin are likely banking on more investor support with the restructuring, though – on quarterly reports, Alphabet will now be able to report the performance of its divisions separately, showing off the strength of individual projects while explaining away the weaker ones.