Google rallies 5% after announcing a huge organizational overhaul

Google just announced a big restructuring of its business and now the stock is rallying.

Shares of Google were up as much as 5% in after hours trade on Monday after the company announced that CEO Larry Page will take the reins of a new publicly-traded company called Alphabet, which counts Google - among other companies - as a subsidiary.

Sundar Pichai, currently in charge of product at Google, will now take the role at CEO of Google.

Here's a quick ex plainer from Google's release on the move:

What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren't very related.

You can read Google's full release here, and a letter from Google CEO Larry Page on the move here.

Here's the chart:

Google Finance