Google

Google this afternoon released its first-quarter 2012 earnings results. And as you can imagine, there are a lot of zeros in them. Specifically, revenue was at $10.65 billion for Q1 2012, 24 percent higher than in Q1 2011. Cash on hand at the end of March was $49.3 billion, and Google added about 600 jobs in Q1.

Additionally, Google announced what essentially is a stock split, creating a new class of non-voting capital stock that will be awarded via a dividend to existing stockholders in a one-to-one manner.

We'll be listening in on the conference call in a few minutes to see if there's any Android-specific news.

Source: Google Q1 2012 Earnings; Founders Letter

 
There are 2 comments

icebike says:

The new shares will be non-voting shares, and will help the cofounders maintain control over the company.

"Maintaining this founder-led approach is in the best interests of Google, our shareholders and our users," write the cofounders.

From "Here's Why We Just Announced A Stock Split"

Pretty bold if you ask me. They (all stock holders, actually) essentially get to cash out the non-voting shares, transferring huge piles of cash into their pockets, while still retaining majority control of the company by virtue of holding the voting shares.

The non-voting shares are still good for speculation purposes in the stock market, but their value will fall to reflect the fact that they carry no voting rights.

Small_law says:

Avoids competitors from getting too much voting stock too. Just leaves open the possibility of a BS derivitive action as a last resort. It is pretty bold.