Google has posted 61 per cent jump in net income for the January-March quarter and announced a stock split designed to give founders Mr Larry Page and Mr Sergey Brin larger control and make takeover attempts difficult.
Net income in the first quarter of 2012 increased to $2.89 billion compared with $1.8 billion in the same quarter last year, the company said in a statement.
It reported 24 per cent surge in revenues from the year-ago period to $10.65 billion for the quarter ended March 31, 2012.
Google said it would create a new class of non-voting capital stock that would be separately listed on the Nasdaq Stock Market.
Under the stock split, the existing investors would receive one share of the non-voting stock for each share they now own.
“It’s effectively a two for one stock split — something many of our investors have long asked us for,” Google said.
These non-voting shares will be available for corporate uses, like equity-based employee compensation, that might otherwise dilute Google’s governance structure.
The move is designed in a manner which would give Mr Page and Mr Brin a firm grip on the nearly 60 per cent of the voting power.
“We are creating a corporate structure that is designed for stability over long-time horizons. By investing in Google, you are placing an unusual long-term bet on the team, especially Sergey and me, and on our innovative approach...,” the two co-founders said.
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