Google shares traded at an elevated rate on Monday following the company’s Friday announcement that cofounders Larry Page ad Sergey Brin would each sell of 5 million shares of their holdings in the company.
The decision to sell the shares, released Friday in a filing with the Securities and Exchange Commission, is part of the Internet Goliath’s strategy to increase asset diversification and liquidity. The shares will be shed over the next five years.
Close to 3 million shares of Google were being traded at midday, a leap from 2.7 million, the three-month average volume. The decision has been at least temporarily negative for the company as more shares were sold off that purchased, driving the stock down 1.6 percent to a still impressive $541.24.
Brin and Page made the decision to let go to the shares slowly to minimize the effect it would have on the market. Still, the company made waves despite their efforts and the limited amount of shares released. The total worth of the shares is $5.4 billion assuming current prices.
The decision will bring their current voting power down under 50 percent, but the 10 percent owned by the company’s third in command will insure the trifecta maintains voting control.
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