SEC Announcement: Google Is On Sale
Google will be on sale in near future. According to a new filing with SEC, Google shares worth about $4.4 billion will possibly be sold by two of its co-founders Larry Page and Sergey Brin. The decision was made by Page and Brin in the last week of the January, but the actions are following the decision now.
Both Brin and Page possessed about 44.6 million shares of Google Class B stock and another 44.6 million shares of Class C stock until January 30, 2015. The difference in classes almost means difference of ‘having a say’ in the company.
Floyd Norris notes in his blog post for NYT that each share in Class A is empowered with 1 vote, while Class B keeps the shares with 10 votes for one share. Similarly, the Class C is basically held by the Google insiders, whose shares can’t be brought in the market.
Whatsoever, the co-founders have filed the new trading plan for their shares. The new plans include selling of approximately 2 million shares each of Class B stock and 2 million shares from Class C stock. Having sold the aforementioned stakes, they will still be owners of 40.6 million dollars shares each in both Class C and B respectively.
Google stocks in Class B and Class C are trading at round $550 per share which means the 8 million shares to be sold by Page and Brin, will be translated to $4.4 billion.
Because of the dual-class structure of shares in Google, Page and Brin will remain pretty powerful in Google family as they will be having 52% of the voting rights in Google. Interestingly, the possessors of 52% voting rights will only own 11.9% of shares in Google’s Class A and B common stock.
As I explained in the upper passages, more decisive power in the Google lies with the Class B shareholders. So, surely this is the reason, Brin, Page and Google Chief Eric Schmidt have their stocks in this very Class B which promises “Super-voting” shares.
Despite containing sufficient details of the transactions, the SEC findings don’t specify the date for the actual transaction.