Saturday Musings: On What The Co-Founders of Google Are Going to Buy
The co-Founders of Google (Sergey Brin and Larry Page) have decided to take a little cash out of the equity monster that is Google. The two currently own a combined 57,700,000 shares of the company. They are each selling 5,000,000 of their shares. There are business implications to this, the two will now own only 48% of the company and theoretically could be outvoted by their shareholders. There are reasons that’s exceedingly unlikely, but those are for weekdays when I’m a businessman. Today’s Saturday and I’m instead focused on what they might want to buy with the proceeds of their 5,000,000 shares each. Combined that’s 10,000,000 shares with a current value of $550.01, or (as the calculation above shows, $5,500,100,000. I have some theories on why they needed to make this little withdrawl:
- They wanted to buy a new car or two or 3,050 Buggati Veyrons (the most expensive car in the world at $1.8 Million) or 478,000 Smart Cars.
- They wanted to buy a new house, or the top 10 most expensive houses in the world. Actually, if they bought all 10 houses TWICE they would still have 1 Billion left over for taxes and realtor fees.
- They could have some friends over for dinner. If they purchased a nice steak ($10), a side ($5) and poured a glass of wine($3) they could have the entire United States population over for dinner and still have $27,000,000 left over to spend on paper plates.
- They could buy 1 out of every 16 properties in Allegheny County, based on their assessed value.
Just for fun, what if they sold their entire stake in Google. That’s $31,350,570,000 for 57.7 million shares. The same metrics work out this way:
- They could buy 17,350 Buggati Veyrons or 2.7 million smart cars.
- They could buy the 10 most expensive houses nearly 15 times.
- Assume they’re planning on having everyone over to Pittsburgh where the sales tax is 7%. Let’s say they take us to McDonalds and buy a 4 piece nugget ($1.07), a Double Cheeseburger ($1.17), a McChicken ($1.07), and a small drink ($1.07). These two billionaires could treat the ENTIRE POPULATION OF THE WORLD to lunch and still give use each a quarter to buy desert out of the gumball dispenser.
- They could buy nearly 40% of Allegheny County (39.4%).