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Alphabet has replaced Google

his is the last day that Google is operating without a parent company. After the close of markets Friday, the company officially will become Alphabet and will trade as such on Monday. Google will become a business unit running under the Alphabet umbrella and will focus on core Internet-related businesses, including search, YouTube and Android. The company announced the official change on its investor relations page.

“Long-term, this could be a big deal, but it must be more than a name change,” said Patrick Moorhead, an analyst with Moor Insights & Strategy. “Non-Google companies under Alphabet need to show a few things – like they need to enable innovation and autonomy.”

Google announced in August that it was creating a parent company and that Google would become one of its wholly owned subsidiaries. The paperwork is filed and it’s official: Google has restructured itself into Alphabet. As of the close of business today shares of the old Google are now part of Alphabet, which counts Google as a subsidiary. Sundar Pichai will keep running day-to-day operations at the new Google, except now with the title of CEO. Google now includes Android, Search, YouTube, Apps, Maps and Ads. Meanwhile, Alphabet can focus on Google Fiber (high speed internet), Calico and Life Sciences (health), Google Ventures and Google Capital (investments), Nest (home automation) and Google X (everything fun, like drone deliveries, self-driving cars and city-wide WiFi).

Google’s research projects, like smart contact lenses that can read blood sugar levels for diabetics, will have its own executives overseeing the work. With less attention split between money makers and big dreams, Alphabet is expected to be able to do a better job at both. At least some changes may already be visible to the public: namely, Google’s redesigned logo. As one source told us previously, Google was hesitant to make big changes to its iconic logo while Page was CEO. But with Pichai in charge, the pitch to update its logo for the era of smaller screens was an easier sell.

Not much will change on Friday for ordinary folks. On Wall Street, shares of Google will still trade with the tickers GOOG and GOOGL, following last year’s stock split, but the corporate name will now be listed as Alphabet Class A Common Stock and Alphabet Class C Capital Stock.

The biggest changes are yet to come.

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