Google announces stock split
The company is issuing shares with no voting rights.
Google has announced a stock split after reporting a surge in profits.
Under the new plan, control of the company will be handed to its original founders - Larry Page and Sergey Brin for “the very long term”. A new class of stock will be issued to shareholders, with the new shares giving owners no voting power, thereby cementing the current balance of control. One of the new shares will be given to stock holders for every share they currently own.
The stock plan came as Google said it earned $2.89bn in the first quarter, up from $1.8bn a year earlier. This was an upturn from the October-December quarter, where profits fell below expectations. However, Google also reported that average prices of advertising were down.