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Come And Get It! Google To Sell 10 Million Shares!

Discussion in 'BlackHat Lounge' started by The Scarlet Pimp, Jan 23, 2010.

  1. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    Google Founders to Sell 10 Million of Their Google Shares

    http://mashable.com/2010/01/22/google-founders-sell-shares/

    Larry Page and Sergey Brin, the two billionaire co-founders of Google, will each sell 5 million of their Google shares over the next five years, according to an SEC filing.

    Since Mr. Page and Mr. Bring are significant shareholders and executives for the technology giant, they are required to report their transaction plans for their piece of the company they founded over a decade ago.

    Currently the two men own approximately 57.7 million shares of Google ? about 18% of Google?s market value and 59% of the voting power. After the five year plan is complete, they will own around 47.7 million shares, dropping their interest in Google to around 15% of its capital stock and 48% of its voting power. This equates to a transaction of $2.25 billion, based on the current value of a share of Google, $550.01.

    Yes, this technically means that the two co-founders are surrendering their absolute voting control of the company, but it?s incredibly hard to see a situation where every other investor and shareholder in the company would vote against their wishes. In other words, the drop in their voting power is not a big deal.

    Why would the founders sell their shares of Google, especially as the stock has risen dramatically in recent years? The answer is diversification, one of the most prudent and practical moves in investing. It?s the same thing that Bill Gates has done for years in order to diversify his profile and give him the flexibility to invest in other endeavors, such as his foundation. In fact, the founders have done something similar before, back in 2004.

    Larry and Sergey aren?t leaving anytime soon, nor are they going to be outvoted by anybody in the foreseeable future. They just wanted more flexibility with their money.

    $2.25 billion can buy a lot of things, you know. :D
     
  2. 7878

    7878 Executive VIP Premium Member

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    I won't be buying any G stock. Not without Doc Brown and a Delorean.


    Still, that's a pretty surprising move giving up the majority like that, even if it is over 5 years.
     
  3. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    tell me about it... wonder if something else is going on under the table.
     
  4. jargle

    jargle Newbie

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    bing + yahoo merger has google shaken in its boots
     
  5. jstover77

    jstover77 Executive VIP Jr. VIP Premium Member

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    Until Yahoo and Bing hold a majority share of search traffic, Google isn't shaking anything.
     
  6. 7878

    7878 Executive VIP Premium Member

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    That's like saying a heavyweight fighter would be scared of 2 midgets if he had to fight them both at the same time.

    Were you being serious? :confused:
     
  7. showbizvet

    showbizvet Power Member

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    Staggering amount, hard to conceive of it. But yeah, Gates and Google guys certainly have the midas touch, but even so, diversification is a smart move and they ain't dummies. Google itself thrives on diversification, it's amazing how much I use it and really don't even think about it. search/adwords/adsense/maps/earth/wave... the list goes on.
     
  8. Dangazzm

    Dangazzm Regular Member

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    Rofl, that is a good comparison... I read somewhere though that bing traffic clicks on like 3x the ads than what other search engine traffic does so since they released bing they are doing SOMETHING half right...
     
  9. 7878

    7878 Executive VIP Premium Member

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    I agree. But to say that G is "shaken in its boots" over the BY merger deserved a smart ass reply. :)
     
  10. Sanitarium

    Sanitarium Regular Member

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    Depends, how sharp are the canines on these midgets? Those SOB can munch the meat off a thigh in 1 minute.

    But seriously at the moment the only thing that might be shaking on google is their balls, right over the lips of bing ready for a tea bagging.
     
  11. alexaassassin

    alexaassassin Registered Member

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    Buy companies where management is buying their own company's shares.

    Don't buy companies who f**k-over half of their advertising buyers (AdWords)
    and advertising venues (AdSense) to the point where they have very few
    when their entire business model from the onset was advertising income...

    ... cuz the stock will fall ...and fall ...and fall ...and fall ...and...

    PS.
    If Microsoft wanted to, all future builds and updates to current builds of MS products
    could prevent or cause barriers to the use of Google and yahoo
    - thus forcing people to BING.
     
    Last edited: Jan 23, 2010
  12. BusinessMachine

    BusinessMachine Junior Member

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    They might get for some sort of monopoly for that.