Google has been known to take risks and do precisely what nobody thought they would do. The trend continues with the latest announcement from the company. Essentially, Google is breaking up into a collection of smaller companies; all owned by an umbrella corporation known as Alphabet. That is not to say that the Google we know and love is going away.
What is happening to Google is that it has become too large for any single person to run, which is why founders Larry Page and Sergey Brin has decided to spin everything off as its own company. The Google we know will become a fully own subsidiary of Alphabet Inc, with a new CEO running everything. Other parts of the former Google, like the experimental X Labs and Youtube, will also become companies with their own CEOs. Page and Brin will move to become CEOs of Alphabet.
This new structure will see Page and Brin mainly overseeing allocation of funds and resources to the many different CEOs; while each company will gain a large amount of autonomy. It all looks like a medieval monarchy, where a sovereign oversees a number of different lords who have complete control over their own households and lands. Think Game of Thrones with less violence and bloodshed.
With Page and Brin changing roles, it will now fall to Sundar Pichai to act as CEO of Google. That is the core business of Google which involves the internet business and services like the search engine, photos, and gmail.
There is no telling how many companies are being spun out of this new plan, as Google has become a massive company dabbling in everything from artificial intelligence, to maps, to space travel, and even extending the human lifespan.