Alphabet forms new holding company XXVI Holdings Inc
02 September 2017
Google's parent company Alphabet has formed a new holding company called XXVI Holdings Inc to manage the various "Other Bets," according to a Bloomberg report.
These Other Bets are the subsidiaries formed under the Alphabet structure about two years ago.
Before the formation of XXVI yesterday, the Other Bets were still technically Google subsidiaries.
XXVI was formed to finalise the transformation from Google to Alphabet. According to a spokeswoman for Alphabet who spoke to Bloomberg the change was a "legal formality" that will not affect the "ultimate shareholder control" or operations of the company.
The new entity, called XXVI Holdings Inc, will own the equity of each Alphabet company, including Google. Also the new structure legally separates Google from other units such as Waymo, its self-driving car business, and Verily, a medical device and health data firm.
Google co-founder Larry Page announced Alphabet two years ago to foster new businesses that operating independently from Google (See: Google restructured under holding arm `Alphabet', Sundar Pichai made CEO).
Technically, however, those units, called the ''Other Bets,'' were still subsidiaries of Google and with the new structure, unveiled yesterday, the Other Bets become subsidiaries of Alphabet on the same legal footing as Google.