Google created the Alphabet parent company in 2015 to separate Google from its other businesses.
In August 2015, Google announced a corporate restructuring that made Alphabet Inc. the new holding company. Google’s core internet businesses, including Search, YouTube, and Android, became subsidiaries of Alphabet, while projects such as life sciences and investment operations were separated into other units.
The restructuring was intended to give individual businesses more independence and make financial reporting clearer. Google co-founders Larry Page and Sergey Brin became Alphabet’s chief executive and president, respectively, while Sundar Pichai became Google’s chief executive.
Alphabet is often discussed among the world’s largest companies by market capitalization because advertising, cloud computing, software, and digital platforms generate substantial economic value. However, Alphabet’s market cap is not the same as Google’s standalone value, because Google is a subsidiary rather than a separately listed parent.