Jan 24, 2010
According to an SEC filing, Google’s Co-Founders Larry Page and Sergey Brin have planned to sell off their 10 million shares over next 5 years. With stock trading around $550 as on Jan 22, 2010, total revenue generation is estimated to be at $5.5 Billion. This is a typical strategy followed by tech founders to diversify their share holdings. Microsoft’s founder, Bill Gates sold stocks of Microsoft in a similar manner to diversify the stock value.
Larry and Sergey, with each selling 5 million shares will be collectively left with 48% voting power and 47.7 million shares (15% of total Google’s outstanding capital stock). Current holdings held by the co-founders is of 57.7 million shares which represents 59% of voting power and 18% of Google’s total outstanding capital stock.
Though the founders would have the largest holding in Google but the sell off would mean that Larry and Sergey will no longer have full control on share holder voting outcome as they do today. Of course they can stop selling shares before they are left with 50% voting power. Even if they sell off entire 10 million shares and have 48% of voting power, Larry and Sergey have long list of loyal supporters, employees and investors who would go along with their say in decisions made in the company.
With advancements in Google’s technology and strategic introduction of Android, Google Chrome and Nexus One, future looks bright with Google.
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