Loon and Wing will continue to go ahead with their missions they started at the X research division, Alphabet said, calling them as its "Other Bets."
Loon, which is to be at the helm of Alastair Westgarth as the new CEO, will remain committed to the business of using high altitude balloons to deliver WiFi Internet service to "unconnected and under-connected people around the world."
Alphabet said Loon has most recently brought Internet connectivity to people in Puerto Rico after Hurricane Maria devastated the island last year.
Meanwhile, Wing will be building airborne delivery drones to transport goods with better speed, cost effectiveness and environment-friendly efficiency. The new company will be led by new CEO James Ryan Burgess, with Adam Woodworth as the CTO.
Alphabet said its X research division aims to create radical new technologies and build a bridge from an idea to a proven concept.
"Now that the foundational technology for these projects is built, Loon and Wing are ready to take their products into the world," Astro Teller, captain of Moonshots at X wrote in an official blog post.
Loon and Wing are the fourth and fifth companies to "graduate" from Alphabet's X incubator.
They will join other Alphabet subsidiaries such as smart-thermostat maker Nest, health-data firm Verily and self-driving car operator Waymo.