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by muyuu 4455 days ago
Why would Google be required to pay cash when Facebook wasn't?
1 comments
matthewmacleod 4455 days ago
That's the point of this change - Google weren't required to pay cash, but given their limited ability to offer stock deals without dilution of the founders' voting rights, it was probably not possible to offer stock.
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gcb0 4455 days ago
This is nonsense.

If they could have offered x billions in y shares, what change now? Will people accept offers for x billions in 2y shares?

It makes zero sense!

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Jacqued 4455 days ago
The new shares issued here have stricly no voting rights.

So they can offer them in any quantity without having to worry about diluting their voting rights. Whereas offering 19B in voting shares (even though I'd imagine class A shares have less rights than class B) might have been enough to dilute Brin and Page's voting rights significantly.

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gcb0 4454 days ago
makes sense now. thanks.

but then, wouldn't the non-controlling shares be deemed worthless in the long run and it's price plummet in comparison to the controlling shares?

Any other big company did that before?

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