Google unveiled a surprise corporate reorganization Monday, forming a new parent company dubbed Alphabet that will include the Internet search unit as one of several entities. They cleverly made their new website http://abc.xyz. The company has now drawn the line more clearly between its R&D efforts and its core businesses. Meanwhile, Page and co-founder Sergey Brin are becoming the new CEO and president at Alphabet.

And this will actually make Google a subsidiary of Alphabet Inc; and Google will now be getting a new CEO.

One of the top technologies companies Google has announced name of an alumni of IIT Kharagpur Sundar Pichai as a CEO of company.

Google is performing extremely well today, but both the co-founders think that it can be more accountable and cleaner, for which there is a need for restructuring.

Google’s new forays, however, have also put pressure on the company to demonstrate that its advanced projects are paying off. Alphabet, in turn, may give Google some cover on how it reports the results of its newly formed divisions. Alphabet will own Google plus a variety of other companies.

The name Alphabet was chosen for two reasons, Mr Page said. What Google DID do was to create an umbrella company that’s able to better handle all the unusual or otherwise non-Googley projects they’ve found themselves creating over the past few years. Google will continue to operate as it now does and most of Google’s apps and services such as Search, Android, YouTube, Chrome and Maps will remain under its control. The search giant has been ratcheting up its financial investments into healthcare, which consumed more than a third of its total Google Ventures investments in 2014. Over at Google, Sundar Pichai, who was senior vice president of products, will now take over as CEO of the company. “The whole point is that Alphabet companies should have independence and develop their own brands”.

“Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related”, Page writes.

He added: “This change is more of a shuffle around for brands such as Nest [Google’s smoke alarm and thermostat business] or Fiber [its US broadband service]”.

All Google shares will be automatically converted into the same number of Alphabet shares, with all of the same rights.