Google Founders To Sell 10 Million Shares Giving Up Controlling Interest Over Next Five Years

According to a regulatory filing submitted today the founders of Google Lawrence “Larry” Page and Sergey Brin, plan to sell off 5 million Google shares each over the next five years, which would cause them to surrender majority voting control over the company. At the moment they have about 58% of voting power for the company. After the sales their share will fall to 48%, However CEO Eric Schmidt currently holds shares accounting for almost 10% of Google’s voting power. Therefore together, the 3 of them can still control Google if they are united.

See SEC Filing

Item 8.01     Other Events.

On November 30, 2009, Larry Page and Sergey Brin each adopted stock trading plans in accordance with guidelines specified under Rule 10b5-1 of the Securities and Exchange Act of 1934 and Google’s policies regarding stock transactions. In the future, they will begin selling a portion of their Google stock pursuant to these stock trading plans.

Larry is a Co-Founder of Google and serves as Google’s President, Products and Sergey is also a Co-Founder of Google and serves as its President, Technology.

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. The transactions under these plans will be disclosed publicly through Form 4 and Form 144 filings with the Securities and Exchange Commission. Using these plans, they can gradually diversify their investment portfolios and can spread stock trades out over an extended period of time to reduce market impact. Because these plans were established well in advance of a trade, they also help avoid concerns about whether these officers had material, non-public information when they made a decision to sell their stock.

Larry and Sergey currently hold approximately 57.7 million shares of Class B common stock, which represents approximately 18% of Google’s outstanding capital stock and approximately 59% of the voting power of Google’s outstanding capital stock. Under the terms of these Rule 10b5-1 trading plans, and as a part of a five year diversification plan, Larry and Sergey each intend to sell approximately 5 million shares. If Larry and Sergey complete all the planned sales under these Rule 10b5-1 trading plans, they would continue to collectively own approximately 47.7 million shares, which would represent approximately 15% of Google’s outstanding capital stock and approximately 48% of the voting power of Google’s outstanding capital stock (assuming no other sales and conversions of Google capital stock occur).

Based on todays value of Google share which is $550.01 per share , it will cost them about 5.5 Billion dollars having each of them 2.75 Billion dollars. They are only 37 and they are both billionaire. Assuming that the cost per share will still remain at $550, they will still have a remaining 26 Billion Dollars or 47.7 Million Shares of stock.

Dexter Panganiban https://techathand.net/about-2/

Dexter is a person who loves technology,new gadget, SEO, Social Media and Christianity. Follow him at twitter via @techathand and add him @ Google+ and contact us at [email protected]

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