According to a regulatory filing submitted today the founders of Google Larry Page and Sergey Brin, plan to sell off 5 million Google shares each over the next five years, which would cause them to surrender majority voting control over the company.
If they followed the plan, the stock sales would reduce their voting power over Google’s stock from 59% today to around 48%, depriving them of majority control.
However CEO Eric Schmidt currently holds shares accounting for almost 10% of Google’s voting power. Therefore together, the trio would continue to control Google.
Page and Brin’s stock selloff will take place through gradual, pre-arranged sales over the next several years. Such trading plans are commonly used to diversify the portfolios of executives with significant holdings in their own company stock.
Google’s stock closed Friday at $550.01 per share. At those prices, Page and Brin would each fetch $2.75 billion.
Google’s stock has fallen is just a couple of weeks after hitting its 52 week high of $629.
This news probably will continue to be a drag on the stocks price when it opens back up for trading and Google was down another $5 after hours.