What Google’s Alphabet revamp means for consumers
“The major [Google] franchises – that includes search, YouTube, and Android, will continue what they have been doing,” Roger Kay, president of tech research firm Endpoint Technologies, told FoxNews.com. “For consumers [the restructuring] will probably be undetectable.”
"I can't imagine that this would have any material impact on the way that consumers interact with Google on a day-to-day basis," added Charles King, principal analyst of tech research firm Pund-It. "I think that the vast majority of the mainstream businesses of Google are in safe hands."
The Silicon Valley heavyweight is changing its operating structure by creating a new holding company called Alphabet. The company says its new structure will give more independence to many of its wide-ranging and ambitious projects.
Google has been aggressively expanding beyond Internet search in recent years, from Google Glass and its Project Wing drone initiative to self-driving cars. Other projects include the rollout of Google Fiber for high-speed Internet and cable TV and Google’s Nest home technology business.
Under the plan announced Monday, Alphabet will be comprised of the core Google business — including Internet search, mapping and YouTube — along with newer businesses that will be managed separately, such as Google Fiber, Nest and the investment arm Google Ventures.
Google CEO Larry Page will become CEO of the new entity, with his co-founder Sergey Brin serving as president. Longtime Google executive Sundar Pichai, who has taken on increasingly important roles at the company in recent years, will be CEO of the core Google business.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google,” explained Brin, in a blog post Monday.
Brin also cited the “amazing progress” being made by new services such as Google Photos and Google Now, which compiles information such as weather and directions tailored to individual consumers’ needs.
“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. “Down the road, will certain businesses be shot down or spun off because they are not paying their way? That could happen,” he added.
Google shares rose more than 3 percent in Tuesday trading.
Follow James Rogers on Twitter @jamesjrogers
The Associated Press contributed to this report.