Google Inc. reported that its main shareholders, Larry Page and Sergey Brin are going to sell 5 million shares of the company. Given the value of the shares at the close of trading on Friday, January 22 ($ 550.01 per share), earning potential of each of the founders of the company from the sale is estimated at $ 2.75 billion
Google”s founders intend to gradually reduce its overall share in the capital. Planned to sell the shares within five years from the date of the first transaction. According to the report, directed to the U.S. Commission on Securities and Exchange Commission (SEC), the sale of shares - part of a long-term strategy for the diversification and increased liquidity of assets to reduce market pressures on the investment portfolios of the shareholders.
Today Page and Brin, together own 57.7 million shares of Google, which cost $ 31.7 billion in cash. While Page and Brin control only 18% of capital Google, thanks to a complex system of joint-stock company owned 59% of votes in decision-making. However, five years after the successful sale of 10 million shares of Google at the Page and Brin will remain 47.7 million shares, ie 15% of the capital and only 48% of the vote, less than a controlling stake of the company.
share capital of Google since the publication of the company on the stock exchange in 2004 are two types of shares - Class A and Class B. Each share of Class A corresponds to one vote at the shareholders meeting, while each share of Class B - ten voices. Shares of the second type belong only to Sergey Brin, Larry Page and chief executive Eric Schmidt. When selling a share of Class B is automatically converted to a share of Class A. Therefore, the share of votes from the founders and CEO during the sale is reduced much less than the sale of shares of Class A.
Earlier
executives have sold shares of Google Class B. Once in 2004, the company held a very successful initial offering of its shares on the stock exchange (IPO), top managers took advantage of good opportunity to redeem their securities. Three months after the IPO, Page and Brin have sold for 7.2 million shares of Google each, and CEO Eric Schmidt has sold 2.2 million of securities. While the cost of one share of Google was $ 169.4, more than three times smaller than the current price of the company is $ 550.
fact that Page and Brin have handed over a controlling stake, raised suspicions about what the founders of Google would not want to risk if suddenly after five years of quotes Securities Corporation will drop in price. In the meantime, no one accuses Brin and Page in violation of the rules of 10b5-1 of U.S. law on securities - it prohibits the sale of shares on the basis of insider information. Google General Counsel Kent Walker said that when trading on insider information, do not plan to sell shares to five years.
is noteworthy that after the sale of its shares to the founders of Google control of the company will remain in the hands of top management. In addition to the founders, President of Products Larry Page and President of Technology Sergey Brin, CEO Eric Schmidt controls 9,5% of shares in Google. A month before the IPO Google in 2004, all three agreed that they will work as a team for 20 years.
While differences of opinion and assessments are not excluded, Brin, Page and Schmidt argue that all issues be resolved peacefully. Thus, in five years Google will be a controlling stake in the hands of not two but three top managers. Eric Schmidt, who in August 2009 left the board of directors of Apple, will guarantee a stable future in Google, entering the number of key owners of the company.
Google”s net profit in 2009 totaled $ 6.5 billion, a 54% higher rate in 2008 total revenues of Google rose nearly $ 2 billion - with $ 21.8 billion to $ 23.7 billion About 66% of all revenue brought Google”s own services company, and the rest of the company collected from partner resources.
the profits exceeded analysts” forecasts. For comparison: in 2008 net profit of Google barely totaled $ 4.23 billion, compared with $ 4.2 billion - in 2007, “Given that the world economy experiencing just the first days of his recovery, a similar conclusion, is to our outstanding “- said Eric Schmidt.
Google - the first in popularity (77,05%) system in the world of Internet search, processing over 40 billion queries per month for 186 languages. Google is ranked seventh in the ranking of the most expensive brands in the world. Currently, the state of the founders of Google graduates of Stanford University, Larry Page and Sergey Brin are estimated at $ 16 billion each (on their own volition annual salary is $ 1) and depends on the value of the shares of Google stock.
Kosterin rescues “Tonis” Projected growth of wages for a number of industries modest than last year … This year the market avtouslugd0fhas all chances to become the overall champion in the growth rate … Country somehow very quickly resigned to the fact that for the past month living without a state budget approved by the law …
How to ask for salary increase: the growing demands vs reality
Wine climbed into the box
I lost my television frequency
All SRT
Restaurateurs find a middle
Builders do botanists
Boy and burzhuiny
Tymoshenko and Stelmach “persuaded” the bankers to buy Government Bonds by more than 2 billion UAH.
No Comments, Comment or Ping
Reply to “Fathers Google will share control of the”