Tags: corporate governance, Google, stock splits, VWAP
How much would you pay for a share of Google Class C stock? Those are the zero-vote shares that will soon be distributed, on a one-for-one basis, to holders of Google’s low-vote Class A shares, assuming that the settlement Google announced today goes through. We previously discussed the split when it was announced last year: Google’s founders don’t want to ever lose voting control of the company, so they’re proposing that any new shares issued for acquisitions, etc., be non-voting C shares; shareholder lawsuits have held this up until now but with the settlement it should go forward.
The traditional answer is that a share without voting rights is worth less than a share with voting rights because, y’know, sometimes you want to vote, and so various studies find something like a 2 to 10% discount for non-voting shares. But with Google that’s a little silly since no one really votes anyway: the high-vote Class B shares, which are mostly owned by co-founders Larry Page and Sergey Brin, give them about 56% of the vote, so whatever you do with your piddly Class A shares doesn’t matter. So the As and the Cs are basically the same except the As come with the hassle of having to mail back your pointless proxy card.1
So if you could get a C cheaper than an A, that seems like an arbitrage and you should buy it because the prices should eventually converge. But markets can remain irrational etc. etc. etc., so absent any obvious catalyst for convergence why would you do that? So Google, and some clever plaintiffs’ lawyers, provided a catalyst: Read more »
Tags: art, brilliant, check the Internet, FBI, Google, Helen Fuchs, Jeffrey Gundlach, porn
There is no denying that Jeffrey Gundlach is a hugely talented man whose IQ would rank among the highest in the world if he ever had it tested. “What’s it like having lunch with a genius,” he once asked a colleague, who presumably answered, “To be honest, it’s giving me an inferiority complex just breathing the same air as you, knowing that your brain is the standard for how intelligence will be measured from now until the end of eternity.” Until recently, however, the application of Gundlach’s brilliance was largely confined to bond management. According to a new profile by Bloomberg Markets, though, Gundlach’s intellectual prowess is just as if not more impressive when it comes to crime solving. Read more »
Tags: bonds, Google, Treasuries
There’s something interesting going on in these Wall Street Journal articles (Money & Investing and Deal Journal) today about how corporate bonds now sometimes trade inside of Treasuries. Or somethings interesting; one thing that’s going on is, like, why the day after the election? One possibility is that the message here – which the Journal is helpfully conveying from bond investors to the government – is “see? get your fiscal cliff shit together or soon you’ll be pricing your bonds outside of Google, and you don’t want that do you?”
There may be a side helping of, like, annoy modern-monetary-theory bloggers; from a certain viewpoint this graphic is a hot mess of category mistakes1:
BUT THE GOVERNMENT HAS A PRINTING PRESS oh never mind. Maybe Exxon does too, I don’t know.
But this is my favorite part: Read more »
Tags: Dan Loeb, don't test him, Google, Marissa Mayer, resumes, Scott Thompson, Third Point, Yahoo
Considering he’s now a Yahoo! board member, Dan Loeb presumably approves of the hire but one should always assume a cross-check on his or her credentials will be run anyway, just in case. [WSJ, related]
Tags: FaceBook, Google, governance
Dollar Shave Club is getting some press today; coincidentally I just used one of their razors for the first time this morning and it was fine, despite having only four blades instead of the now-industry-standard seventeen. So the great razor wars may have been on my mind when I read that Google is splitting its stock to create a new class of non-voting shares. And this story seemed somehow familiar:
(1) Google went public in 2004 with a dual-class share structure that it said would allow it not to be evil, because its visionary founders would not be beholden to the short-term financial pressures of Wall Street;
(2) Facebook is about to go public with a dual-class share structure that it’s pretty frankly saying will allow it to be evil but also oooh connect people etc. etc.,
(3) and it is getting tons of press and has a market cap or pre-market-cap or whatever that’s like half of Google’s despite having like 1/10th of Google’s net income and revenues;
(4) also Facebook is much better at being Facebook than Google+ is at being Facebook;
(5) which makes Google’s relatively elderly late-30s founders Larry Page and Sergey Brin mad;
(6) so they said fuck everything, we’re doing three share classes.
Right? I mean, the announcement says: Read more »
Tags: Doug Whitman, Google, he also threatened to: banish her from their table in the cafeteria-- defriend her on Facebook -- tell everyone she wore jumbo-sized tampons, hedge fund managers, OH NO HE DI'INT, slimeballs, Whitman Capital
A Northern California hedge-fund manager was charged Friday with making more than $900,000 on trades in Google Inc. and other technology companies based on improper tips he allegedly received from a neighbor and a business associate. U.S. authorities alleged that Doug Whitman, of Whitman Capital in Menlo Park, Calif., shared information about other publicly traded companies or made payments in exchange for the tips. He also allegedly went so far as threatening to never speak to one co-conspirator if she wasn’t going to be a “slimeball” anymore, authorities said. [WSJ]
Tags: Centerview, fairness opinions, Frank Quattrone, Google, Motorola Mobility, Qatalyst
Once disgraced, now rehabilitated, and always mustachioed tech banker Frank Quattrone has gotten some well-deserved congratulations for convincing Google to up its bid for Motorola Mobility from $30 to $40 despite the fact that (1) MMI was trading at $24.47 and (2) there was no other bidder. So, yay. Also his firm, Qatalyst, is getting $40mm in fees (44bps of enterprise value on a ~$9bn EV deal) for 14 days of work; co-adviser Centerview, who presumably did not come up with the plan of “try asking for more money,” is getting a piddling $12.5mm.
All that and more is in Motorola’s merger proxy filed today. Also in the proxy, though, are some internal forecasts from MMI – which might help explain Qatalyst’s success, provide ammunition to Motorola shareholders unhappy with the price, and/or raise questions about the quality of MMI’s forecasting. Read more »