This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

We Interrupt This Program to Tell You About Google's Stock Split

Stocks in this article: GOOG

NEW YORK ( TheStreet) -- Some news is so important that the media has to change its plans on what to write about. That's what just happened to me after reading that Google (GOOG) is actually going to split its stock for the first time since its initial public offering.

This is a huge shift in the shareholder-friendly company's plans, and the stock in after-hours trading is up more than 4% to a new high of $ 1,183.

As I reported Thursday, GOOG is the best tech company in the world today, bar none. But for the past three years co-founders Larry Page and Sergey Brin have bristled at any stock split arrangement that would weaken their control over the destiny of the company they founded in a garage more than 15 years ago.

According to an Associated Press report, the stock split is scheduled to take place on April 2. "It had been delayed because of staunch resistance from other Google Inc. shareholders, who feared the maneuver would unfairly benefit Page and Brin at the expense of just about everyone else," according to the report.

Apparently that concern is now a thing of the past. To make the stock split possible the company settled a shareholders lawsuit and - are you sitting down -- agreed to pay up to $7.5 billion if the split doesn't work out well for shareholders like Google's officers imagine.

Google's plan will create a new class of "C'' share that has no voting power. As reported, tne share of C stock will be distributed for each share of voting Class A stock owned as of March 27. To begin with the value of the current stock will be divided equally between the two types of shares.

Both classes of stock will then trade separately with different ticker symbols. Class C shares will still use the company's existing "GOOG" ticker symbol, while Class A stock will use the symbol "GOOGL." Will the co-founders still be able to dominate and rule this most powerful of technology titans after the split?

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,707.09 +245.77 1.49%
S&P 500 1,960.17 +33.06 1.72%
NASDAQ 4,469.8290 +86.9820 1.98%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs