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Google bosses loosen controls

by on25 January 2010

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Flog $5.5 billion worth of shares


Google
co-founders Larry Page and Sergey Brin are giving up some of their control of Google in return for huge wodges of cash.

Under a plan announced to Wall Street the long-time chums will flog 5 million Google shares in a five-year period that will begin with the first trade. Apparently the sales will occur periodically to lessen the chances of hurting Google's stock price. Page and Brin will lose some of their clout with the company but will still be Google's most influential shareholders.

The pair own a special class of Google stock that gives them combined voting power of about 59 per cent - enough to override the wishes of all other shareholders if they want. However after they flog off the shares they will only have 48 per cent voting power. However they run Google as a ruling triumvirate with the company's chief executive, Eric Schmidt, whose shares hold 10 per cent voting power.

Of course everyone knows that triumvirates usually end up with a dagger in the back under the statue of Pompey. Schmidt, Page and Brin have agreed to remain at Google at least through 2024.
Last modified on 25 January 2010
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