On August 10, 2015 Google's Larry Page announced the formation of a new umbrella corporation named Alphabet.
Page, the CEO of the newly formed corporation, says the new structure will allow each brand (including Google with Sundar Pichai as CEO) to move forward with separate and attainable goals.
Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well.
Alphabet Inc. will replace Google Inc. as the publicly-traded company. All shares of Google currently held by any individuals or groups will convert into the same number of shares in Alphabet automatically, and Google is now a wholly-owned subsidiary of Alphabet. The two-tiered stock will continue to trade as GOOGL and GOOG.