The two Google co-founders, Larry Page and Sergey Brin, own a mass chunk of Google’s shares which ensures them virtually a complete control over Google’s stock-related decisions. Google has been prepping up for a stock split for some time and since Brin and Page wanted this to happen, the stock split proposal has been approved.
It wasn’t that hard to imagine that the proposal will be approved since together, the two co-founders have 56% voting power at Google. According to this split, a new class of non-voting Class C stock will be created which can then be used. However, the creation and use of this new class stock will not affect the voting powers of Brin and Page.
At the same time, with the stock split, the value of A Class shares will be reduced to half. The reduced half, which will be cut away from the value of Class A stock shareholders, will be handed back to these shareholders in the form of share from Class C stock.
Some have speculated that with the help of this split, Brin and Page have tried to further secure their power and ensure that they have their say in decision related to Google’s stock. However, there were a few who have opposed this split. In fact, some Google shareholders have gone on to file a lawsuit in Delaware, something which may delay the enactment of this stock split decision till October or so.