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G is for Google

googleblog.blogspot.com

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Re: G is for Google

#601
post #585

Earlier quoted context omitted.

Correct: Class C - 0 Votes (GOOG) Class A - 1 Vote (GOOGL ~4% higher cost per share) Class B - 10 Votes (Not publicly traded)

I still can't believe that investors are willing to trust Larry and Sergey in perpetuity(same goes for Zuckerberg and there are many other corporate doing this gambit). Sure, I like all the weird sideprojects, but what happens when they decide to build a 100B Monolith on a moon? If you happen to own Class C shares, you have no say. If you own Class C and to some extent A shareholders get a raw deal. The Class B holde…

> It just feels morally wrong that someone owning 20% or 15% of company controls 50+% of the votes.

Shareholders don't really "own" a company in the traditional sense. They own a specific package of claims against the company in the event of dissolution, voting rights, etc. In the simple case of a company with one class of shareholders, the analogy between owning X% of the shares and owning X% of the company is fairly close, when you have differentiated share classes that analogy is less close.

And shareholders own because they choose to acquire the stock under specific terms. If they don't like the terms, they can just not accept the deal that would give them the stock. I don't see how its morally wrong that someone that bought a set of claims that don't include voting rights, or include smaller voting rights than some other set of claims, has exactly what they bought.

Re: G is for Google

#602
post #381

Earlier quoted context omitted.

This reorganization makes no difference on the financials. The release explicitly stated the company is trading at the conglomerate level.

Google could go public though, right? (The new Google)

[deleted]

Re: G is for Google

#603

Earlier quoted context omitted.

Fiber is the hint about what this really means. Capital intense businesses like ISPs or car companies are expensive to operate and the financials would drag down Google. In this model, the big shareholders get to dilute risks in these ventures, while retaining the ability to exponentially increase their personal wealth.

This reorganization makes no difference on the financials. The release explicitly stated the company is trading at the conglomerate level.

> This reorganization makes no difference on the financials.

In the short term, it doesn't. But it may be preparation for something in the longer term that does.

Re: G is for Google

#605
post #282

Google (or now, Alphabet) is an less diversified Berkshire Hathaway with tons of R&D expenditures. I think it's likely that tax benefits from the reorg are the biggest reason for the stock price increases. But it also appears likely that there will be an offering of Alphabet stock in some form so it's curious to see how the value will break out.

[deleted]

Re: G is for Google

#606
post #590

Earlier quoted context omitted.

I don't get it.

It's hard for a company like Sun to have a collection, a variety, a spectrum of companies, when busy-body astronomers feel compelled to reclassify your favorite planet as a "dwarf" out from under you. http://www.cbronline.com/news/sun_microsystems_announces_plu... But Alphabet has a long way to go beyond the 26 English letters, before they run out of funny diacritical Unicode letters with umlauts, accents, slashes, l…

Right, that's what I was saying. The point is obviously not to collect one company for each letter. When they have 5 companies that start with G, are you really going to look at them and say "LOL I TOLD YOU SO"? The name just means variety, not a specific naming plan.

Re: G is for Google

#607
post #418

Earlier quoted context omitted.

Android was tiny and far away from launching when it was acquired. And the YouTube acquisition was definitely considered crazy at the time.

YouTube wasn't considered crazy at all by the time Google bought it. It was clear by then that it was a runaway success, so clear that even traditional media companies like Viacom and News Corp were bidding for it. It certainly wasn't some small company that Google grew from nothing into dominance; it was a billion-dollar company that had already won its space. Some articles from the time: http://money.cnn.com/2006/1…

Other articles form the time: http://www.zdnet.com/article/mark-cuban-says-google-is-crazy...
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