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Google stock split to keep founders in control

Google stock split to keep founders in control
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Google is changing the structure of its shares to ensure that the company’s founders – Larry Page and Sergey Brin – maintain control.

Each current share will be split into two and new stock being issued for employee compensations and acquisitions will have no voting power.

The surprise decision, was unanimously approved by its board.

It was announced as the world’s leading internet search engine reported net income the equivalent of 2.2 billion euros in the first quarter – up 61 percent on the same period last year.

Google executives said the company continued to gain ground with large advertisers during the first quarter, particularly for the display ads on its YouTube site and for mobile ads.

However there was a worrying 12 percent drop in search advertising rates – the second consecutive quarterly decline.

Analysts also expressed concerns over the pending acquisition of Motorola which will put Google in the hardware business – an area it has no experience in, with much lower profit margins than its online ad business.