Sundar Pichai named as head of Google.
Google has been reduced to a subsidiary of a new company Alphabet, which is the brainchild of Larry Page and Sergey Brin.
Alphabet will also include new ventures such as the "smart-home" unit Nest, Calico, Google Ventures, Google Capital, Google X and other subsidiaries.
The new structure is expected to provide a better clarity into how Google invests in various ventures which includes next generation driverless cars, high-speed Internet service and health-related technologies, as well as simplifying future acquisitions or potential divestments.
Larry Page and Sergey Brin in a joint statement said: "Google is not a conventional company. We do not intend to become one.
"As part of that, we also said that you could expect us to make "smaller bets in areas that might seem very speculative or even strange when compared to our current businesses."
"From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have."
The move is expected to be beneficial to the investors, as they will get more details how the businesses are operating.
Alphabet will also replace Google as the publicly traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights.