Google becomes part of a new company called Alphabet in major corporate restructure

Google has announced a major change to its corporate structure, creating a new parent company called Alphabet that will oversee the search giant and the company's other assets.

Google's current CEO Larry Page will become Alphabet's Chief Executive Officer, while co-founder Sergey Brin will become Alphabet's president.

In the surprise announcement, Page said Alphabet will be the umbrella company for the tech giant's research arm X Lab, investment unit Google Ventures and health and science operations, as well as the search unit Google, whose CEO will be current vice president Sundar Pichai.

"Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related," Page said in a blog post.

"Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed.

"We will rigorously handle capital allocation and work to make sure each business is executing well. We'll also make sure we have a great CEO for each business, and we’ll determine their compensation.

"In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole."

Alphabet will become the company's publicly traded entity and all shares will convert to Alphabet stock, CNBC reports.

The two classes will continue trading as GOOGL and GOOG.

Alphabet's website has been launched at abc.xyz