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Google’s Stock to Split 2 for 1

Google said late Thursday that it would repay its stockholders by giving them more non-voting stock

Rather than pay a cash dividend, which is culturally repugnant to so-called growth stocks, Google said late Thursday, after posting better-than-expected results, that it would repay its stockholders, who must be dizzy from all its up and down movement, by giving them more non-voting stock, effectively a two-for-one tax-free stock split.

It will create a “new class C stock” that trades under a different ticker symbol.

In a letter on the Google web site Google founders Larry Page and Sergey Brin restated their control over the massive company because they, along with chairman Eric Schmidt, own the only real voting stock, which won’t be part of the split. They also hold a lot of the non-voting Class A stock and even as Class B holders will get the new class C stock.

Page said in passing that Google isn’t planning any big acquisition soon. Google has its eye on Apple’s recent unthinkable move to institute a cash dividend because of its gargantuan cash hoard.

Google chief counsel David Drummond said a special board committee of independent directors with its own advisors took 15 months to come to the new stock conclusion.

There’s no indication when the split could happen.

More here.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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