Google’s profits rose sharply in the first quarter, to $2.89 billion, with CEO Larry Page saying the company is seeing “tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube.”

The search giant also announced an unusual plan to implement what amounts to a stock split, outlined in a letter to shareholders by Page and co-founder Sergey Brin. Under the plan, the company will create a new class of non-voting capital stock, distributed through a dividend to existing Google shareholders.

Page and Brin write in their letter, “It’s effectively a two-for-one stock split—something many of our investors have long asked us for. These non-voting shares will be available for corporate uses, like equity-based employee compensation, that might otherwise dilute our governance structure.”

They added, “We believe that it will provide great competitive strength—insulating Google from short-term pressures, whatever the source, for a long time to come, while also giving us more flexibility around equity grants.”

More coverage: MarketWatch and Business Insider.

Comments

  • Guest

    I wonder what growth rate we’ll see from Bing?

  • Guest

    Congratulations to Google on a blockbuster quarter! The stock price split is a good start, although we’d prefer to see shares sold around the $30 range instead of the $350 range.

  • GOOGisaSELL

    Any shareholder who sees this continued board-approved reduction of their voice and still stays in the stock is a idiot.

    • Grant Neckermann

      You’re going to have to explain that one or be written off as pure hyperbole.  In their years of being public, they’ve essentially been run by the trio and have built the world internet superpower.  As a shareholder I feel very confident in my investment and am looking forward to seeing this as a $600 stock again soon, even after it splits.  Nothing is changing here from a management standpoint, its just guaranteeing more of the same and for the time being, that’s fine by me and my 150% return. 

    • Guest

      Any shareholder who thinks they can run a search engine better than Google can is a liar and a fool.

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