Google Stock Split Finalized, Company Will Use Extras Shares To Ramp Up Long-Term Investments
Google on Friday unveiled a stock split that will double the number of outstanding shares at the company while ensuring that co-founder Larry Page and Sergey Brin do not lose control over the company.
Google is rolling out a new class of nonvoting shares that will be distributed to Google sharesholders in a 2 for 1 split. Google will then use the money to make long-term investments without diluting the company’s power structure.
The move also means Google will be able to hold onto its $49 billion cash reserve without the need to pay out a shareholder dividend.
In a statement regarding the decision Larry Page and Sergey Brin said”
“We have put our hearts into Google and hope to do so for many more years to come. So we want to ensure that our corporate structure can sustain these efforts and our desire to improve the world.”
It’s a good time to be a Google shareholder, first-quarter profits leaped by 61% and revenue was up 24% from the same time last year. While Google did see the amount per click for advertising fall off shortly that was largely because of mobile device growth which pays less per PC advertising click. None the less more mobile users means more pageviews and ultimately more money for website owners and Google.
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