Google co-founders to unload stock in company
Page and Brill will shed 10 million shares, cutting joint stake from 59% to 48%
Computerworld - The co-founders of Google Inc. are each looking sell 5 million shares of the company as part of "pre-arranged stock trading plans," according to a company filing with the federal Security and Exchange Commission.
Once the sale is completed, the share of outstanding Google stock owned by co-founders Larry Page and Sergey Brin will shrink from 59% to 48%. Thus the pair will no longer own a controlling stake in the company.
However, some observers note that Page and Brin generally work closely with Google CEO Eric Schmidt, who owns just under 10% of the company, so the trio retain the power they need to steer Google's future.
"On Friday, we disclosed that Larry and Sergey have entered into plans to sell 5 million Google shares each over the next five years," Google spokesperson Jane Penner said in a statement e-mailed to Computerworld. "These shares represent about 17% of their overall Google holdings. They are both as committed as ever to Google and are integrally involved in our day-to-day management and product strategy. The majority of their net worth remains with Google."
This isn't the first time that Page and Brin have made this type of stock sale. In 2004, they sold about 14 million shares.
"These pre-arranged stock trading plans were adopted in order to allow Larry and Sergey to sell a portion of their Google stock over time as part of their respective long-term strategies for individual asset diversification and liquidity," Penner added.
The regulatory filing noted that Page and Brin now own about 57.7 million shares of Google.
Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, send e-mail to firstname.lastname@example.org or subscribe to Sharon's RSS feed .
Read more about Management in Computerworld's Management Topic Center.
- Study: Total Economic Impact of Google Apps Employees can work faster and IT spending can decrease when companies switch to Google Apps, says a commissioned study by Forrester Consulting. Going...
- Protecting Digitalized Assets in Healthcare Healthcare providers face an urgent, internal battle every day: security and compliance versus productivity and service. For most healthcare organizations, the fight is...
- Is a SaaS Deployment Right for You? Find out the answer and as well as the other deployment options.
- Discover How Mail Express Solves 2 of Your Biggest IT Headaches Email. It can be the source of some of IT's biggest headaches. As it eats up storage and bandwidth, it also opens up...
- Increasing the Value of Your Reports and Dashboards Learn how incorporating other analytical capabilities such as predictive modeling and visualization can increase the value of your reports and dashboards by providing...
- Video surveillance for IT: maximum image quality, minimum bandwidth Join us on Thursday, May 8th at 1 p.m. EST when Willem Ryan, Senior Product Marketing Manager at Avigilon, will discuss how IT... All Management White Papers | Webcasts