Alphabet Wraps Up Reorganization With a New Company Called XXVI

Alphabet Inc. is forming a new holding company designed to finalize its evolution from Google, the web search giant, into a corporate parent with distinct arms in far-flung fields like health care and self-driving cars. The new entity, called XXVI Holdings Inc., will own the equity of each Alphabet company, including Google.

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 operate independently from Google. Technically, however, those units, called the "Other Bets," were still subsidiaries of Google. The new structure, unveiled Sept 1, enables the Other Bets to become subsidiaries of Alphabet on the same legal footing as Google. Google is also changing from a corporation to a limited liability company, or LLC. This won’t alter the way the business pays taxes, Johnson said. The switch is partly related to Google’s transformation from a listed public company into a business owned by a holding company.