Google Holders Are Selling: Shouldn't You?

The founders of Google are selling large chunks of stock. Of course the common thing to hear is that this is to diversify since they own so much stock. They are, however, selling $5.5 bn out of the $16 bn that they own. That is a huge portion of their stock that they are selling. Google's stock price is already double its lows of last March and surely the stock looks quite pricey. I'd be selling my stock, too, if I were them. I'd even possibly short some if it wasn't for all the go-go momentum "investors" that buy stock in companies like Google and Apple similar to pretentious women buying Chanel bags saying they are a good investment. It is almost the equivalent of driving a Mercedes - a pride issue  - a big brand to own stock in these overvalued good name good companies. I am not refuting these are great companies. I am saying they definitely are not good values.

Here is the article from Yahoo. (yeah it is not from google, but from rival yahoo - ironic, huh?)

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Google co-founders to sell $5.5B combined in stock

Google co-founders to sell shares worth $5.5B combined, retain less than half voting power

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  Companies:

  • Google Inc.
  
  

Related Quotes

Symbol	Price	Change
GOOG	550.01	-32.97

{"s" : "goog","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Michael Liedtke, AP Technology Writer, On Friday January 22, 2010, 9:21 pm EST

SAN FRANCISCO (AP) -- Google Inc. co-founders Larry Page and Sergey Brin are relinquishing some of their control over the Internet search leader with the sale of 10 million shares worth $5.5 billion at current prices.
Under a plan disclosed Friday, the longtime business partners will each sell 5 million Google shares during a five-year period that will commence with the first trade.
The sales will occur periodically to lessen the chances of hurting Google's stock price.
Page and Brin, both 36, will remain Google's most influential shareholders, although they will be losing some of their clout.
The two iconoclasts own a special class of Google stock that gives them combined voting power of about 59 percent -- enough to override the wishes of all other shareholders if they wanted. The duo secured this veto power to ensure Google remained true to their values, which are summed up in the company motto, "Don't Be Evil."
After the sales, the founders' holdings will be whittled to a combined 47.7 million shares with 48 percent voting power.
Falling below the 50 percent threshold might not matter because they run Google as a ruling triumvirate with the company's chief executive, Eric Schmidt, whose shares hold 10 percent voting power.
Although the trio acknowledge occasional disagreements, they insist they always work things out amicably. What's more, Schmidt, Page and Brin have agreed to remain at Google at least through 2024.
Executives and founders of companies commonly enter into predetermined stock trading plans to raise cash and diversify their investments.
Page and Brin each currently have about $16 billion of their fortunes tied up in Google stock. By their own choice, their annual salary at Google is just $1.
"They are both as committed as ever to Google and are integrally involved in our day-to-day management and product strategy," Google spokeswoman Jane Penner said. "The majority of their net worth remains with Google."
This marks the second time Page and Brin have sold big chunks of stock since Google went public in August 2004.
Three months after the company's initial public offering, Page and Brin filed an 18-month plan that divested 7.2 million shares apiece.
Back then, Google shares were trading around $169.40. The stock is worth three times as much now, closing at $550.01 Friday after falling $32.97, or 5.7 percent.

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