In a surprise announcement Monday, Google disclosed its intent to form a new parent company, called Alphabet.

The new entity will encompass not only Google but other units previously categorized as being part of Google, such as its capital investments arm and Google X laboratory.

Google co-founder Larry Page will become CEO of Alphabet, with fellow founder Sergey Brin named its president. Sundar Pichai, a key lieutenant to both co-founders, will become CEO of Google.

The move is explained as a means of “slimming” Google and stripping away the growing number of businesses that have formed under its umbrella in recent years that don’t have much to do with the search giant’s core competency.

“We are not intending for this to be a big consumer brand with related products — the whole point is that Alphabet companies should have independence and develop their own brands,” wrote Brin in a blog post announcing the move.

Alphabet will replace Google as the publicly traded company. Financial information for Google will now be reported separately from other entities like Calico, a unit exploring technologies aimed at promoting human longevity.

Investors had long been clamoring for more transparency on Google’s financial performance, which had become increasingly clouded by the growing number of offshoots. The change in structure is expected to be reported beginning with the fourth quarter in January.

The move is a big validation for Pichai, a rising star at Google who was already running most of the company’s biggest areas of oversight.

“He has really stepped up since October of last year, when he took on product and engineering responsibility for our Internet businesses,” wrote Brin. “Sergey and I have been super excited about his progress and dedication to the company.”

Google stock was up nearly 6% in after-hours trading.