The former CEO of Google, Eric Schmidt is selling roughly 42 percent of his shares in the stock of the Search gaint. What will it cost the man? about $2.51 billion dollars and that too in an increasing order.
This news was announced by the company when they were in a meeting with the U.S. Securities and Exchange commission on 8th of this month. They further added that about 3.2 billion shares and that too of the class A common stock.
The company claims that they have a master plan for the trading of the stocks, and that is gonna provide Eric some more liquidity and in their words " Individual asset diversification" . Well the decision was theirs to make, what can we say.
There was some affect on this decesion of the market value of the company, when the shares of the company closed after the after-hours trading on friday. The shares closed at $781.26 which is $4.11 down.
Ready for another shock? Must have heard of spokesperson of a company but google has a spokeswoman, who is not willing to comment anything about the thoughts of the company and its CEO about this matter.
Experts say that they don't think that this decesion shows any lack of confidence in the company by Eric, and its not a thing to worry. They said that the point to worry will come when the current CEO or CFO starts trading his stocks.
We dug in a bit deeper, and we found that currently schmidt owns about 7.6 million shares (both Class A and Class B) of the company, and calculations show that his shares alone represent approximately 8.5% voting power, and 2.5% approx of google's outstanding stock.
Thinking from a different angle it also shows us the perspective that maybe scmidt just wants to get more freedom from his relationship with google and wants to start new projects, for which he will need more funds and diversification. He will be playing a lesser significant role in the progress of the company from now on.
Lets talk some more about Schimdt, who was the CEO of google for a decade and made this company, the world's no. 1 search engine. He resigned in april 2011 and the control came into the hands of Google's Co-founder Larry Page.
He unfortunately made into news when he went to North Korea with former New mexico governer on a personal trip and just few weeks later the country conducted a rocket launch. The trip was criticized a lot because the rocket launch was in violation of the code of U.N. Security Council.
Schmidt was ranked 138 in the forbes list of Global billionares who has a net worth of $6.9 billion in March 2012.
What changes that brings in the future is still a thing to see for us, but we know what we should be waiting for. A new future project maybe from the side of Eric. Share what you think of this decesion with us.
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