Google’s founders share selling plan eventually means giving up majority control
January 25, 2010
(ChattahBox) – Google co-founders Sergey Brin and Larry Page disclosed on Friday that they plan to give up their majority control (sort of) of the the company they founded in their Stanford University dorm room 11 years ago, over the next five years. Google made a regulatory filing outlining a plan, where each of the founders would sell 5m shares over the next five years as part of a pre-arranged trading plan. Based on Friday’s share price, the stakes are each worth about $2.75bn.
Brin and Page will eventually own “only” a combined voting rights below majority control at 48 percent of the company. However since Google’s CEO, Eric Schmidt, has an additional 10% of Google’s voting rights, they clearly will still have control as long as their alliance remains strong.
In a statement, a Google spokeswoman, Jane Penner, said that the founders “are both as committed as ever to Google and are integrally involved in our day-to-day management and product strategy. The majority of their net worth remains with Google.”