Google planning first-ever stock split as shares go past $1,100 level
Google is reportedly planning its first-ever stock split that would create separate classes of stock and allow trading under separate ticker symbols.
The search giant had been battling tensions and legal issues with shareholders that delayed the process by years.
The announcement comes as Google's stocks climb past 1,100 dollars apiece, higher by almost 400 dollars from the same time last year, The Verge reports.
During the company's earnings call, Chief Financial Officer, Patrick Pichette, said that plans for the stock split had been finally approved by Google's board.
According to the report, the split would create separate classes of stock, including one with voting power and another without and these stocks would run under separate ticker symbols, which could also lead to varied prices.
These two classes of stocks would also separate from a third class of shares owned by Google co-founders Sergey Brin and Larry Page, worth 10 votes apiece on any official company business.
Google shareholders had originally approved plans for a stock split back in June 2012, but a subgroup of shareholders sued the company claiming that it would lead to dilution of power of the company's shareholders, while shoring up control for Brin and Page.
However, the two sides settled last June, with part of that agreement requiring Google to compensate shareholders if the price of the non-voting shares diminishes beyond a certain threshold within its first year, the report added.
(Posted on 02-02-2014)