Google Co-Founder Takes Over CEO Seat
Just when we think that all the hype and excitement over the announcement that Apple CEO Steve Jobs is taking a leave of absence, another big name in the computer and internet industry makes another big announcement. This concerns Google Inc and it’s all about CEO Eric Schmidt stepping aside and giving his post to Larry Page, the co-founder of Google Inc. The announcement was made together with the company’s report that they had quarterly results with better than expected figures.
With regard to shares, this Internet search and advertising company saw a rise of about 2%. In extended trading, it amounted to $639. On the side of who is to take care of what, it will be Page taking charge of Google Inc’s daily operations. Schmidt on the other hand, while bringing management experience to a young company will now be focusing on things like government outreach, deals and other things working as Google Inc’s executive chairman. Sergey Brin, co-founder of Google will be concentrating on company strategic projects.
Right after the announcement was made, Schmidt tweeted that “day-to-day adult supervision is no longer needed”. When asked why the change in management was made, Google said that it’s all part of a big plan for streamlining decision making. It was also done to create a clearer line with regard to responsibility as well as accountability at the top. UBS analyst Brian Pitz sees it as the company trying to build more efficiency and also trying to compete with Facebook by getting a tech guy seated in the position.
One of the plans the new executive chairman has is to sell 534,000 shares, Class A common stock. Based on the closing share price the company made on Thursday, about $334.7 million would be made on selling stock. Schmidt would still own 2.7% of Google outstanding capital stock. On Google’s official blog, he said that with Google growing, managing it has become a bit more complex. He, Larry and Sergey are working to make a simple management structure as well as make decision making a speedier process.
One of the effects of the change is that the Google’s quarterly financial results beat the Wall Street net revenue expectation.
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