Google just announced a massive overhaul of its business structure

Google's founders just hit a massive reset button on their business.

In a press release sent out Monday afternoon, cofounder and CEO Larry Page renamed and reorganized the company. 

Google has been turned into a subsidiary of a bigger company called Alphabet. 

Alphabet will be a parent company that oversees the new initiatives Google has been launching as of late. 

Larry Page is CEO of Alphabet. Sergey Brin, Google's other co-founder, is the president of Alphabet.

The company has been taking bigger and bigger bets in the past few years that have very little to do with the company's original mission of organizing the world's information.

For instance, in July of 2013, Google announced plans to launch a company focused on curing death. That company, Calico, was going to operate as a stand-alone entity.

Calico will be a subsidiary of Alphabet, just like Google. 

The other standalone businesses: Nest, which does internet-connected home devices, Google Ventures and Google Capital, which do investing, Fiber, which is doing high-speed internet, and Google X, which has projects like self driving cars.

The rest will still be a part of Google. Android and YouTube could also be their own subsidiaries of Alphabet eventually, we would think. For now, they belong to Google in the org chart.

From an organizational perspective, it makes sense for Page to oversee a half-dozen independently running businesses and offer his guidance and direction where possible.