The move will also allow Google to give some of its top executives weightier-sounding titles.

He is the second person of Indian origin to head a major IT company after Hyderabad-born Satya Nadella who became CEO of software giant Microsoft in February 2014, succeeding Steve Ballmer.

Google is likely to steer clear of legal challenges because Alphabet won’t actually make products or work as a brand in its own right.

“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes”, said Page.

“Sergey and I are seriously in the business of starting new things”, Page wrote in a 980-word blog post. One is called Life Sciences, which he described as working on the glucose-sensing contact lens, and Calico which is focused on longevity. He will report to Page and Brin along with the disparate CEOs of all of Alphabet’s subsidiary companies, which will now be run independently of Google’s search operations. The company’s two classes of shares will, however continue to trade on Nasdaq as GOOGL and GOOG. The company Alphabet is “a collection of companies”, with Google being one of them.

Other than the name of the new parent, and news of Pichai’s appointment as Google CEO, Page did not provide many details on any additional changes that would result from the reorganization.

Here is what we know so far – Google’s billionaire co-founders Larry Page and Sergey Brin will run Alphabet, with Page as CEO and Brin as President.

Jenna Pitcher is a freelance journalist writing for IGN.

Going back to Alphabet, Page described it as a collection of companies with Google as the largest, focusing on internet products.

Google shares soared 5 percent in after hours trading yesterday as the news of the restructuring broke.

Google X: Google X is where the company’s most secret projects are developed, is being spun-off into Alphabet, too. Google China moved its servers from mainland China to Hong Kong in 2010 when the company refused to comply with search censorship.

The new operating structure “will be introduced in phases over the coming months”, according to Google’s regulatory filing with the Securities and Exchange Commission, and will mean separate financial statements from the Google unit and its parent. Google’s approach to taxation is increasingly in focus both in the United States and more recently in Australia, with Google reportedly negotiating a 10% tax rate on its profits in Singapore recently.