Subscribe Register Login

Thursday, December 18, 2014, 10:29 a.m.
Top Picks - Arkansas Daily Deal

Google 1Q profit up, plans to split stock 2-for-1

By The Associated Press

This article was published April 13, 2012 at 8:18 a.m.

— Google Inc. reported a 61 percent increase in its net income for the first three months of the year and announced plans to split its stock 2-for-1 to preserve its leadership's control over the company in the long term.

The online search leader said Thursday that it wants to issue a new class of stock to shareholders, but the new shares won't have any voting power. Under the plan, all current stockholders would get one share of the new Class C stock for each share they now own. This effectively splits Google's stock price in half.

Google said the split is something investors have been asking for. In addition, employees given Google stock in the future will get the non-voting stock, allowing voting power to remain with existing shareholders. The same will hold true for stock-based acquisitions that Google makes.

In a letter, CEO Larry Page and fellow co-founder Sergey Brin that without change, senior leaders would eventually lose their voting power. That, they said, would undermine "our aspirations for Google over the very long term."

Since it went public in 2004, Google's founders have emphasized a need to insulate management from short-term pressures.

The new stock plan came as Google said that it earned $2.89 billion, or $8.75 per share, in the first quarter. That's up from $1.8 billion, or $5.51 per share, a year earlier. Excluding one-time items, Google earned $10.08 per share, higher than the $9.66 that analysts polled by FactSet had expected.

Total revenue was $10.65 billion, up 24 percent from $8.58 billion.

Comments on: Google 1Q profit up, plans to split stock 2-for-1

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

TOP JOBS

  • Telemarketing agents

    Needed Position is part-time Starting at $9.00/hour Plus Bo...
    Bryant, AR

  • Heavy equipment oper

    heavy equip. operators City of Helena-West HelenaRegional La...
    WEST HELENA, AR

  • Employment

    Do you talk too much? Do you like people? Help us help you! ...
    Little Rock, AR

  • Donate plasma

    . Save LivesEarn money when you donate at Octapharma PlasmaB...
    NORTH LITTLE ROCK, AR

  • Account executive sales and marketing

    The Arkansas Democrat-Gazette , a successful and growing le...
    Little Rock, AR

Search 720 jobs >

Top Picks - Arkansas Daily Deal
Arkansas Online