Google rallies following "split;" voting shares given slight premium

Both Google's new non-voting class C shares (GOOG +2.5%) and voting class A shares (GOOGL +2.6%) are posting solid gains. However, the latter are trading at a ~$1.40 premium to the former.

By allowing Google to issue non-voting shares that don't dilute Larry Page, Sergey Brin, and Eric Schmidt's voting rights, the split could make the Web giant more willing to use equity for major acquisitions.

Facebook, which already has a dual-class share structure that leaves Mark Zuckerberg in firm control, is set to issue over $17B worth of shares to acquire WhatsApp and Oculus VR.

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Comments (9)
  • ispank
    , contributor
    Comments (1113) | Send Message
    Google is always rallying for no reasons at all. Weird.
    3 Apr 2014, 10:53 AM Reply Like
  • Emerald2112
    , contributor
    Comments (21) | Send Message
    You should...
    3 Apr 2014, 11:08 AM Reply Like
  • DanoX
    , contributor
    Comments (3461) | Send Message
    Mad Men, Google will rally until the day it doesn't.
    3 Apr 2014, 02:28 PM Reply Like
    , contributor
    Comments (438) | Send Message


    Let me see if I understand this.
    Larry, Sergey, and Eric want to maintain control, and that has to be more than 50% of the voting stock. You typically don't need 50% of a corporation's stock to maintain control. Normally, if you have 20%, along with good ideas....that works.


    Don't get me wrong, I like Google, but at some point, investors have to put these prim donna start-up owners in their place.


    Then, (if I get this right), they will be able to use more of the non-voting stock to buy other companies (Which could further dilute the value of your stock).


    I guess this is just another example of the "We and THEM!"


    At some point....investors need to say, "Enough is enough."


    3 Apr 2014, 11:30 AM Reply Like
  • Brian Barbour
    , contributor
    Comments (1292) | Send Message
    probably because they can offload some non-voting stock they would get as compensation for cash without giving any voting rights.
    3 Apr 2014, 11:41 AM Reply Like
  • LarryBlumen
    , contributor
    Comments (264) | Send Message
    duff: do you have anybody in mind who could manage Google better than the founders?
    3 Apr 2014, 02:16 PM Reply Like
  • DanoX
    , contributor
    Comments (3461) | Send Message
    No one is better at milking investor's, other than Zuckerberg or Bezo's.
    3 Apr 2014, 02:33 PM Reply Like
  • locutus49
    , contributor
    Comments (1057) | Send Message
    Angie's List? Herbalife? There are some that are good at milking investors.
    3 Apr 2014, 04:34 PM Reply Like
    , contributor
    Comments (438) | Send Message
    Your kidding Larry!


    This isn't about managing,or not. Remember they kept millions of shares inside Google's IPO, when others put up hard cash. I could imagine you going to a stockholders meeting and setting next to a person that worked at Google who put up nothing and still owns as many shares as you (who paid $2 Mill.)


    These start-up stock deals are so out of line.....Only because dummies jump in to ride a wave.


    This is a case of to many rich people not having a better place to put all the extra money they have accumulated. And, if you can get enough other dummies to jump, it becomes a self-full-filling prophecy.


    Reality will set in some day.


    3 Apr 2014, 07:04 PM Reply Like
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