Live data from Hacker News

Google splits into GOOG and GOOGL today

m1.marketwatch.com

21–30 of 151 posts

Re: Google splits into GOOG and GOOGL today

#21

What if you hold Google shares as part of an index fund? Does the fund now hold both GOOG and GOOGL?

Yes (assuming the fund buys/holds all positions and hasn't taken an optimization strategy)

This has some interesting side effects to things such as the S&P 500 (http://www.forbes.com/sites/investor/2014/04/02/google-moves...)

Re: Google splits into GOOG and GOOGL today

#22

"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.

Shareholder accountability is pretty much bogus. The only shareholders who have ever had a real say are those who owned vast quantities. The flood of blind investing through retirement funds has further diluted shareholder influence to little more than demanding increasing share price.

Re: Google splits into GOOG and GOOGL today

#23
post #17

Do Google employees get Class A, B or C stock?

Every existing class A or B share will be matched by a class C share. Most Googlers had class A shares before, so now we'll have half class A and half class C, i.e. twice as many total shares, with the same number of votes as before.

Re: Google splits into GOOG and GOOGL today

#24
post #11

So does this mean we should expect some large-ish acquisitions in the near future?

“They couldn’t do a big deal before using stock because it changes the voting rights,” he said. “Now, they’ve got a mechanism where they can use their paper for deals and not lose their majority voting rights.”

This implies so. And FB has done $22B in deals since the IPO.

Re: Google splits into GOOG and GOOGL today

#25
post #3

Does this imply that GOOG and GOOGL shares will have prices that will move independently going forward? This should be interesting to watch.

Has a company done something like this before? I've heard of some having a stock that sells for orders of magnitude higher/lower, but not for the same price.

Re: Google splits into GOOG and GOOGL today

#26
This is meant do to one thing -- let the founders retain control while allowing for large stock acquisitions. It's possible Google was muscled out of the Whatsapp deal simply because they couldn't pony up the money. $20B is almost half of their cash on hand. Note that the Nest and Waze acquisitions (small in comparison) were paid for almost entirely in cash.

Re: Google splits into GOOG and GOOGL today

#27

There 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…

Well I wouldn't say they have only a single line of business. Yes, they make pretty much all of their profits from advertising. However they no longer just do searches. They do email, file hosting etc. You name it and they probably do it. They do make money from ways other than advertising too. They have quite a few pay to use services. Like business emails or Google Drive.

Re: Google splits into GOOG and GOOGL today

#28

There 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…

I do wonder sometimes what Android could have meant to them if they had kept it more close hold and made and sold their own devices.

Sure they got lots of other companies to do the expensive hardware R&D, manufacture and marketing, but in the end, what's a multi-billion dollar market in devices is still just a funnel into line-of-business #1.

Re: Google splits into GOOG and GOOGL today

#29
post #3

Does this imply that GOOG and GOOGL shares will have prices that will move independently going forward? This should be interesting to watch.

Yeah, the first thing I thought about when I heard this is that these two shares would be ideal for pairs trading! (Though presumably this will be arbitraged away quickly).

Re: Google splits into GOOG and GOOGL today

#30

"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.

> Oddly, no previous management research has looked at what the legal literature says about the topic, so we conducted a systematic analysis of a century’s worth of legal theory and precedent. It turns out that the law provides a surprisingly clear answer: Shareholders do not own the corporation, which is an autonomous legal person. What’s more, when directors go against shareholder wishes—even when a loss in value is documented—courts side with directors the vast majority of the time.

http://hbr.org/2010/04/the-myth-of-shareholder-capitalism/ar...

Post reply on HN