Search engine giant Google (GOOG) on Thursday reported a 61% jump in quarterly profits compared to a year ago and announced its first stock split since its IPO in 2004. This stock split designed to preserve the control of co-founders Larry Page and Sergey Brin over Google.
The stock split would create a new class of nonvoting shares that will be distributed to existing shareholders in what is effectively a 2-for-1 stock split.
Google’s shares were little changed in late trading after the announcement. They had risen 2.4 percent to $651.01 at the close in New York.
“We have put our hearts into Google and hope to do so for many more years to come,” Chief Executive Officer Larry Page and co-founder Sergey Brin said today in a statement posted online. “So we want to ensure that our corporate structure can sustain these efforts and our desire to improve the world.”
Excluding fees paid to partner websites, net revenue totaled $8.14 billion in the three months ended March 31, compared with $6.54 billion in the year-ago period. Google posted a profit of $2.89 billion or $8.75 per share, compared with $1.80 billion, or $5.51 a share, in the year-ago period.