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The only flaw in such a strategy is that Larry and Sergey control the dominant share of all the voting stock. No outside investor can do a hostile takeover. It
by fixermark 11y ago
The only flaw in such a strategy is that Larry and Sergey control the dominant share of all the voting stock. No outside investor can do a hostile takeover.
It'd require one of the two of them to defect for such a scenario to come to fruition.
- nostrademons 11y agoThe scenario above assumes that one member of the trifecta defects and votes with the activists. Looking at the numbers [1], I was wrong in remembering that Eric Schmidt (46M votes) + all class A shares (280M votes) could outvote the founders (460M votes total). But the scenario still holds if Sergey is the defector - it'd have to be him (230M votes) + 160M Class A shares (roughly 60% of the company) against Larry + Eric. Pretty unlikely scenario, but conceivable, particularly as the founders get older and their interests diverge. [1] http://www.forbes.com/sites/chuckjones/2014/04/02/google-stock-split-in-larry-and-sergey-we-trust/ http://www.forbes.com/sites/chuckjones/2014/04/02/google-sto...