Business

Stock Split Could Cost Google Over $500 Million

Published

11 years ago

April 2, 2015

In this Dec. 12, 2013 file photo, Google co-founder Sergey Brin arrives for the Breakthrough Prize in Life Sciences awards in Moffett Field, Calif. Google may have to pay more than half a billion dollars for an unorthodox stock split aimed at ensuring co-founders Brin and Larry Page retain control over the Internets most profitable company. (AP Photo/Ben Margot, File)

MICHAEL LIEDTKE, AP Technology Writer

SAN FRANCISCO (AP) — An unorthodox stock split designed to ensure Google CEO Larry Page and fellow co-founder Sergey Brin retain control of the Internet’s most profitable company could cost Google more than half a billion dollars.

Page, 42, and Brin, 41, have maintained control over Google since they started the company in a rented Silicon Valley garage in 1998. Their ideas and leadership have spawned one of the world’s best known and most powerful companies with a market value of $368 billion and a payroll of about 54,000 employees.

Yet many investors have become frustrated with Page’s unwavering belief that Google should be spending billions on far-flung projects ranging from driverless cars to diabetes-controlling contact lenses that may take years to pay off and have little to do with the company’s main business of search and digital advertising. The big spending is one reason Google’s stock price is 3 percent below where it stood at the end of 2013, while the Standard & Poor’s 500 index has climbed 12 percent.

To maintain the power to drive Google’s direction, Page and Brin initially accumulated virtually all of the company’s class “B” shares, which have 10 votes for each “A” share. The duo, though, worried that control would erode as Google issued more “A” shares to pay for acquisitions and reward other workers. A year ago Thursday, Google split its stock to create a new category of “C” stock with no voting power that would allow more Google shares to be issued without undercutting Page and Brin.

Class “A” shareholders were outraged, skewering the maneuver as a textbook example of shoddy corporate governance. Google argued there wouldn’t be much difference between the price of “C” and “A” shares because Page and Brin held majority control anyway with the “B” shares. To settle a class-action lawsuit challenging the split, Google agreed to compensate “C” shareholders if the average price of “C” stock fell more than 1 percent below “A” shares through the first year of trading.

Google’s theory proved wrong, said BGC Financial Partners Colin Gillis. The difference turned out to be between 1 percent and 2 percent through the first year, though the final gap won’t be announced for up to 30 days as Google works with outside experts to determine the figures under a complex formula.

“This shows the market does place a value on owning a voting stock,” he said.

Google disclosed in a recent regulatory filing that it would have owed about $593 million to class C stockholders had the calculations been done on Dec. 31. Based on that estimate, the class C stockholders would receive roughly $1.74 per share in cash or additional stock. The exact amount that Google owes will be calculated based on the average trading prices over the full one-year period that ended Thursday after the stock market closed.

The Mountain View, California, company has until early July to pay the money. It’s something that Google can easily afford, given the company holds $64 billion in cash. And the damage could have been a lot worse: Google would have had to pay $7.5 billion, or about $22 per share, had the first-year spread between “A” and “C” shares was 5 percent or more.

Class C shareholders should ask themselves if the money they are getting is enough to compensate for relinquishing their voting rights and ceding control to Page and Brin, said Charles Elson, director of the University of Delaware’s Weinberg center for corporate governance.

Shareholders “are getting this cash for giving up their say in effective management,” Elson said. “This could be a case of ‘penny wise, pound foolish.'”

Google declined to comment.

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Activism

Lu Lu’s House is Not Just Toying Around with the Community

Wilson and Lambert will be partnering with Mayor Barbara Lee on a toy giveaway on Dec. 20. Young people, like Dremont Wilkes, age 15, will help give away toys and encourage young people to stay in school and out of trouble. Wilkes wants to go to college and become a specialist in financial aid. Sports agent Aaron Goodwin has committed to giving all eight young people from Lu Lu’s House a fully paid free ride to college, provided they keep a 3.0 grade point average and continue the program. Lu Lu’s House is not toying around.

Published

3 days ago

December 20, 2025

Oakland Post

Tania Fuller Bryant, Zirl Wilson, Dremont Wilkes, Tracy Lambert and Dr. Geoffrey Watson. Courtesy Oakland Private Industry

Special to the Post

Lu Lu’s House is a 501c3 organization based in Oakland, founded by Mr. Zirl Wilson and Mr. Tracy Lambert, both previously incarcerated. After their release from jail, they wanted to change things for the better in the community — and wow, have they done that!

The duo developed housing for previously incarcerated people, calling it “Lu Lu’s House,” after Wilson’s wonderful wife. At a time when many young people were robbing, looting, and involved in shootings, Wilson and Lambert took it upon themselves to risk their lives to engage young gang members and teach them about nonviolence, safety, cleanliness, business, education, and the importance of health and longevity.

Lambert sold hats and T-shirts at the Eastmont Mall and was visited by his friend Wilson. At the mall, they witnessed gangs of young people running into the stores, stealing whatever they could get their hands on and then rushing out. Wilson tried to stop them after numerous robberies and finally called the police, who Wilson said, “did not respond.” Having been incarcerated previously, they realized that if the young people were allowed to continue to rob the stores, they could receive multiple criminal counts, which would take their case from misdemeanors to felonies, resulting in incarceration.

Lu Lu’s House traveled to Los Angeles and obtained more than 500 toys
for a Dec. 20 giveaway in partnership with Oakland Mayor Barbara
Lee. Courtesy Oakland Private Industry,

Wilson took it upon himself to follow the young people home and when he arrived at their subsidized homes, he realized the importance of trying to save the young people from violence, drug addiction, lack of self-worth, and incarceration — as well as their families from losing subsidized housing. Lambert and Wilson explained to the young men and women, ages 13-17, that there were positive options which might allow them to make money legally and stay out of jail. Wilson and Lambert decided to teach them how to wash cars and they opened a car wash in East Oakland. Oakland’s Initiative, “Keep the town clean,” involved the young people from Lu Lu’s House participating in more than eight cleanup sessions throughout Oakland. To assist with their infrastructure, Lu Lu’s House has partnered with Oakland’s Private Industry Council.

For the Christmas season, Lu Lu’s House and reformed young people (who were previously robbed) will continue to give back.

Lu Lu’s House traveled to Los Angeles and obtained more than 500 toys.

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Activism

Desmond Gumbs — Visionary Founder, Mentor, and Builder of Opportunity

Gumbs’ coaching and leadership journey spans from Bishop O’Dowd High School, Oakland High School, Stellar Prep High School. Over the decades, hundreds of his students have gone on to college, earning academic and athletic scholarships and developing life skills that extend well beyond sports.

Published

3 days ago

December 20, 2025

Oakland Post

NCAA football history was made this year when Head Coach from Mississippi Valley State, Terrell Buckley and Head Coach Desmond Gumbs both had starting kickers that were Women. This picture was taken after the game. Courtesy photo.

Special to the Post

For more than 25 years, Desmond Gumbs has been a cornerstone of Bay Area education and athletics — not simply as a coach, but as a mentor, founder, and architect of opportunity. While recent media narratives have focused narrowly on challenges, they fail to capture the far more important truth: Gumbs’ life’s work has been dedicated to building pathways to college, character, and long-term success for hundreds of young people.

A Career Defined by Impact

One of his most enduring contributions is his role as founder of Stellar Prep High School, a non-traditional, mission-driven institution created to serve students who needed additional structure, belief, and opportunity. Through Stellar Prep numerous students have advanced to college — many with scholarships — demonstrating Gumbs’ deep commitment to education as the foundation for athletic and personal success.

NCAA football history was made this year when Head Coach from
Mississippi Valley State, Terrell Buckley and Head Coach Desmond
Gumbs both had starting kickers that were women. This picture was
taken after the game.

A Personal Testament to the Mission: Addison Gumbs

Perhaps no example better reflects Desmond Gumbs’ philosophy than the journey of his son, Addison Gumbs. Addison became an Army All-American, one of the highest honors in high school football — and notably, the last Army All-Americans produced by the Bay Area, alongside Najee Harris.

Both young men went on to compete at the highest levels of college football — Addison Gumbs at the University of Oklahoma, and Najee Harris at the University of Alabama — representing the Bay Area on a national level.

Building Lincoln University Athletics From the Ground Up

In 2021, Gumbs accepted one of the most difficult challenges in college athletics: launching an entire athletics department at Lincoln University in Oakland from scratch. With no established infrastructure, limited facilities, and eventually the loss of key financial aid resources, he nonetheless built opportunities where none existed.

Under his leadership, Lincoln University introduced:

Football
Men’s and Women’s Basketball
Men’s and Women’s Soccer

Operating as an independent program with no capital and no conference safety net, Gumbs was forced to innovate — finding ways to sustain teams, schedule competition, and keep student-athletes enrolled and progressing toward degrees. The work was never about comfort; it was about access.

Voices That Reflect His Impact

Desmond Gumbs’ philosophy has been consistently reflected in his own published words:

“if you have an idea, you’re 75% there the remaining 25% is actually doing it.”
“This generation doesn’t respect the title — they respect the person.”
“Greatness is a habit, not a moment.”

Former players and community members have echoed similar sentiments in public commentary, crediting Gumbs with teaching them leadership, accountability, confidence, and belief in themselves — lessons that outlast any single season.

Context Matters More Than Headlines

Recent articles critical of Lincoln University athletics focus on logistical and financial hardships while ignoring the reality of building a new program with limited resources in one of the most expensive regions in the country. Such narratives are ultimately harmful and incomplete, failing to recognize the courage it takes to create opportunity instead of walking away when conditions are difficult.

The real story is not about early struggles — it is about vision, resilience, and service.

A Legacy That Endures

From founding Stellar PREP High School, to sending hundreds of students to college, to producing elite athletes like Addison Gumbs, to launching Lincoln University athletics, Desmond Gumbs’ legacy is one of belief in young people and relentless commitment to opportunity.

His work cannot be reduced to headlines or records. It lives on in degrees earned, scholarships secured, leaders developed, and futures changed — across the Bay Area and beyond.

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Activism

Black Arts Movement Business District Named New Cultural District in California

Located in the heart of District 3, the BAMBD is widely regarded as one of the nation’s most important centers of Black cultural production — a space where artists, entrepreneurs, organizers, and cultural workers have shaped generations of local and national identity. The state’s recognition affirms the district’s historic importance and its future promise.

Published

3 days ago

December 20, 2025

Oakland Post

Councilmember Carroll Fife celebrates major milestone for Black arts, culture, and economic power in Oakland. Courtesy photo.

By Post Staff

Oakland’s Black Arts Movement Business District (BAMBD) has been selected as one of California’s 10 new state-designated Cultural Districts, a distinction awarded by the California Arts Council (CAC), according to a media statement released by Councilmember Carroll Fife.

The BAMBD now joins 23 other districts across the state recognized for their deep cultural legacy, artistic excellence, and contributions to California’s creative economy.

“This designation is a testament to what Black Oakland has built — and what we continue to build when we insist on investing in our own cultural and economic power,” said Fife.

“For years, our community has fought for meaningful recognition and resources for the Black Arts Movement Business District,” she said. “This announcement validates that work and ensures that BAMBD receives the support it needs to grow, thrive, and continue shaping the cultural fabric of California.”

Since taking office, Fife has led and supported multiple initiatives that strengthened the groundwork for this achievement, including:

Restoring and protecting arts and cultural staffing within the City of Oakland.
Creating the West Oakland Community Fund to reinvest in historically excluded communities
Advancing a Black New Deal study to expand economic opportunity for Black Oakland
Ensuring racial equity impact analyses for development proposals, improving access for Black businesses and Black contractors
Introduced legislation and budget amendments that formalized, protected, and expanded the BAMBD

“These efforts weren’t abstract,” Fife said. “They were intentional, coordinated, and rooted in a belief that Black arts and Black businesses deserve deep, sustained public investment.”

As part of the Cultural District designation, BAMBD will receive:

$10,000 over two years
Dedicated technical assistance
Statewide marketing and branding support
Official designation from Jan. 1, 2026, through Dec. 31, 2030

This support will elevate the visibility of BAMBD’s artists, cultural organizations, small businesses, and legacy institutions, while helping attract new investment to the district.

“The BAMBD has always been more than a district,” Fife continued. “This recognition by the State of California gives us another tool in the fight to preserve Black culture, build Black economic power, and protect the families and institutions that make Oakland strong.”

For questions, contact Councilmember Carroll Fife at CFife@oaklandca.gov.