So does this mean we should expect some large-ish acquisitions in the near future?
Google splits into GOOG and GOOGL today
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Re: Google splits into GOOG and GOOGL today
#12There seems to be a push to diversify and expand Google's income recently. Google Play Music All Access, Google Helpouts (20% cut), this stock change, Google fiber (while competitively priced, I expect there will be long-term profits), Google Glass, etc. I have been noticing this and assume it's meant to help them fund their robotic and autonomous car projects. These are likely capital-intensive segments of the compa…
how does the stock split affect income? afaict it is purely about governance
Re: Google splits into GOOG and GOOGL today
#13So does this mean we should expect some large-ish acquisitions in the near future?
They're not selling any new shares, just splitting existing ones. So I suspect no.
Re: Google splits into GOOG and GOOGL today
#14So does this mean we should expect some large-ish acquisitions in the near future?
No. This essentially means there will be two classes of Google Stock (A and C) with Class A stock having more voting power than Class C stock from a shareholder prospective.
This dilution of shares essentially gives those with a large share of stock options (like Brin & Page) more power.
Edit: As a user pointed out, Class B should be Class C
Re: Google splits into GOOG and GOOGL today
#15There seems to be a push to diversify and expand Google's income recently. Google Play Music All Access, Google Helpouts (20% cut), this stock change, Google fiber (while competitively priced, I expect there will be long-term profits), Google Glass, etc. I have been noticing this and assume it's meant to help them fund their robotic and autonomous car projects. These are likely capital-intensive segments of the compa…
how does the stock split affect income? afaict it is purely about governance
Correct, they (or anyone else) are not making money directly off this. Just like a regular stock split, when there is a 2 for 1 split each share is instantly worth 1/2 and no one is richer.
Re: Google splits into GOOG and GOOGL today
#16So does this mean we should expect some large-ish acquisitions in the near future?
No. This essentially means there will be two classes of Google Stock (A and C) with Class A stock having more voting power than Class C stock from a shareholder prospective. This dilution of shares essentially gives those with a large share of stock options (like Brin & Page) more power. Edit: As a user pointed out, Class B should be Class C
(a) there already were two classes of shares, A and B. This creates a third class C with no voting power
(b) the argument in the article is that Google would then issue class C shares for use in acquisitions. Brin & Page did not want to issue more A shares, which would risk their majority control; but they would be willing to issue C shares and use them to acquire companies as they would have no dilutive effect on their majority control.
Re: Google splits into GOOG and GOOGL today
#17Do Google employees get Class A, B or C stock?
Re: Google splits into GOOG and GOOGL today
#18"Ownership" without control gives you precisely nothing, except for perhaps standing in a shareholder lawsuit. A company being unaccountable to its investors should make it unattractive as an investment.
Re: Google splits into GOOG and GOOGL today
#19What if you hold Google shares as part of an index fund? Does the fund now hold both GOOG and GOOGL?
Re: Google splits into GOOG and GOOGL today
#20There seems to be a push to diversify and expand Google's income recently. Google Play Music All Access, Google Helpouts (20% cut), this stock change, Google fiber (while competitively priced, I expect there will be long-term profits), Google Glass, etc. I have been noticing this and assume it's meant to help them fund their robotic and autonomous car projects. These are likely capital-intensive segments of the compa…
Google have been trying to find something apart from advertising since pretty much day dot. It's a strategy pioneered by Microsoft, I call it "spaghetti cannon". Turn your free cashflow into spaghetti, fire it at a wall, hope something sticks.
It's sorta-kinda worked for MS. They have 4 or 5 distinct lines of business, each of which could qualify as an F500 alone.
Google don't have that. They have 1, and only 1, line of business sustaining every outlay they have. They've only ever had 1, and only 1, line of business, right back to their first public reports.