Google gets a name change to give investors greater clarity on its core web advertising business versus newer ventures like driverless cars. Kirsty Basset reports on the company now known as 'Alphabet.'
They admit they're still getting used to the name, and now, so will the rest of the world. The company known as Google is to become part of a new holding company called 'Alphabet'. The revamped structure is likely to give greater insight into how much money is being made by newer ventures like Google X, which produced the unpopular Google Glass device. CMC Market Analyst Jasper Lawler. (SOUNDBITE)(ENGLISH) CMC MARKETS ANALYST JASPER LAWLER SAYING: "Investors will have a better idea of how much money the core business is making - the search and advertising business, and how much money is perhaps being wasted, or at least spent on some of these more slightly obscure research and development investment projects that some other arms of Google are investing in." Along with the name change, there was some reshuffling of positions. Eric Schmidt will now be executive chairman of Alphabet. Google co-founders Larry Page and Sergey Brin will become CEO and President of Alphabet respectively. While longtime Google exec Sundar Pichai will now head up Google. (SOUNDBITE)(ENGLISH) CMC MARKETS ANALYST JASPER LAWLER SAYING: "Maybe you could argue that the strategic direction that Google's going to take is going to be slightly different, because we've seen the founders move into positions on top of Alphabet." The move could signal a shift towards more creative and ambitious projects like driverless cars. Other ventures that will be part of the new structure include connected home products-maker Nest and its venture capital arm, Google Ventures. Markets cheered the move - Google shares were up as much as 7 per cent in after hours trading.