Google Stocks Split Upon Approval

This week Google's stockholders have approved the split spoken off earlier this year which will double the amount of company stocks on the market but will retain the company's existing voting numbers. What will be happening here is that for every Class A stock there is right now, there will soon also be a Class C stock with no voting rights. The value of the Class A stock will be halved and the Class C stock will take up that newly created value.

This stock split is apparently intended to keep both Google co-founders Sergey Brin and Larry Page in power with the ability to overrule all other shareholders. This will remain true as Google continues to compensate new employees and acquisitions with stocks while new voting rights do not expand. The vote on this decision was decided in a final form this week though this annual meeting was not attended by Page because he has fallen ill – or has simply "lost his voice" as they say.

An AP report posted at Wtop notes that the actual split will not take place until at least October due to a legal suit currently taking place. This legal battle will be between Google and a set of shareholders in Delaware state court, and is said to be taking place because "the board breached its fiduciary duty by acceding to the wishes of Page and Brin."

Stay tuned as the big split continues to crack.