Bonnie Petrie

Google’s Stock Split Plan Will Tighten Founders’ Grip on Company

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JOHANNES EISELE/AFP/Getty Images(NEW YORK) — Google announced a controversial stock split on Thursday that will allow Sergey Brin and Larry Page lifetime control of the company they invented 16 years ago.

The 2 for 1 stock split creates a new class of non-voting shares.  Investors would receive one share of the non-voting stock for each share they now own.  The split would also cut the price of each share in half.

The creation of a such a large block of non-voting shares is believed to be a first for a big U.S. publicly traded company.

The move came as Google announced a 61 percent jump in first quarter profits. 

Copyright 2012 ABC News Radio

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