U.S.-based technology giant Google says it is reorganizing in order to separate its profitable Internet-based ventures from its less well-known initiatives.
Google chief executive officer Larry Page announced in a blog post Monday that he and co-founder Sergey Brin will head a new holding company called Alphabet, which will oversee the original Google company that includes its now-iconic search engine and its popular YouTube video service.
Also included are several different ventures originally created under the Google brand that will now be run as separate entities. The new divisions include an effort to prolong human life, a venture building high-speed Internet networks in several cities, a drone delivery service, and the research lab designing a self-operating automobile.
Page and Brin, who founded Google back in 1998, will hold the posts of Alphabet CEO and president respectively.
In his blog post, Page explained in that "in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant."
He said the new Alphabet company will allow these new separate divisions the independence to conduct and develop their own innovative efforts.
Google's new operating structure will emulate that of noted U.S. financier Warren Buffet, who owns dozens of companies through his Berkshire Hathaway holding company, all of which operate independently.
The reorganization is also aimed at satisfying the concerns of Wall Street investors, who have been calling for greater transparency of Google's overall financial health out of concern that the company has been distracted from focusing on its core businesses.