Alphabet’s control mechanism is built on its dual-class share structure, which is common among tech companies but often criticized for concentrating power in the hands of a few. Today, Google remains a leader in AI, cloud computing, and digital services, continually shaping how we interact with technology and information. From a dorm-room project to a global powerhouse, Google’s story is one of relentless innovation and ambition. This article breaks down the ownership structure of Google and Alphabet, detailing major shareholders, financial performance, market share, and competition.
- This search technology showed enough promise that sun Microsystems co-founder Andreas Bechtolsheim wrote the fledgling company a $100,000 check in August 1998, even before Google was incorporated.
- Alphabet is the subject of a number of anti-trust lawsuits, some of which have already been decided against Alphabet.
- We will also dive into the historical stream of Google to help you understand the knitting of Google’s ownership.
- The company posted a net income of $73.80 billion on revenue of $307.39 billion for 2023.
- Like most major tech companies, Alphabet hired prodigiously throughout the pandemic and up to 2022, then slashed costs and implemented layoffs in 2023.
Primarily for the growth and stability it brings to their portfolios. Over the next few years, Page and Brin raised over $25 million from venture capitalists and other early investors to support scaling their technology. This included leading Silicon Valley VC firms like Kleiner Perkins and Sequoia Capital. Provides updates on financial markets, stock performances, economic trends, and investment strategies. Latest developments in technology, including new gadgets, software updates, industry trends, and breakthroughs in science and innovation.
A significant portion of Vanguard’s total stake is held through its index funds, which track major market indices like the S&P 500. It acquired YouTube in 2006, launched Android in 2008, and introduced Chrome in 2009. The 2010s saw innovations like Google Drive, Google Maps, and the AI-powered Google Assistant.
Who owns Google? Top 5 Alphabet shareholders
In fact, at the time, both of them held over 55.6% of the voting power. Larry Page is the co-founder of Google, holding 19.8 million shares in Alphabet Inc., making up around 3% of the company’s outstanding shares. Larry also remained the CEO of the company from the founding year 1998 till 2001. Besides, Larry Page remained CEO of Alphabet Inc. from 2015 to 2019.
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The largest institutional holder with 410,033,523 shares, showcasing its unwavering confidence in Alphabet’s potential for growth and innovation. Overseeing key products, Raghavan’s stake of 68,528 shares underscores his influence in shaping the future of Google’s services. However, investors should be aware of the differences between GOOGL (voting shares) and GOOG (non-voting shares) before purchasing.
In its comment, Open claims that allowing AI companies who own google now to access copyrighted content would help the US “avoid forfeiting” its lead in AI to China, while calling out the rise of DeepSeek. Today, billions of users turn to Google for a multitude of purposes, from conducting searches and finding jobs to connecting with others and enjoying entertainment, highlighting its immense utility. The project quickly evolved, leading to the official launch of the company on September 4, 1998. Before joining Google, Sundar worked in engineering and product management at Applied Materials, Inc., a semiconductor company, and in management consulting at McKinsey & Company, a management consulting firm. Other substantial private investors comprise John Doerr (read OKR), venture capitalist and early investor in Google, and Sundar Pichai, the current company’s CEO. With a slightly higher ownership stake, Larry Page’s stake in Google is worth at least $70 billion.
In addition to the Google subsidiaries, Alphabet has another business segment called Other Bets, which includes several early-stage startups the company has acquired over the years. The most well-known example is the Waymo self-driving vehicle startup, but there are several others. For the longer version, Google is actually a broad collection of businesses, which is itself split into two segments — Google Services and Google Cloud.
- The company’s control is still in the hands of the two co-founders, Page and Brin.
- Alphabet is a publicly traded company, meaning it is owned by shareholders.
- These concerns sparked a 2017 shareholder lawsuit alleging Alphabet‘s structure serves Page and Brin at the expense of the public investors.
- When a company decides to issue equity in the form of common stocks, it can do so in several types depending on the limitations that the owners of the company want to give to voting powers.
- Most top institutional investors of any publicly traded company (especially larger ones) are companies that offer index funds and have to own enough shares to represent the stock’s position in the index.
- This was reported in documents related to an antitrust lawsuit filed by 10 US states against Google in 2021.
However, Alphabet is not the only tech giant embracing a dual-class approach. Facebook, Snap, Uber, Airbnb, and many other Silicon Valley firms have adopted similar models to empower founders. These concerns sparked a 2017 shareholder lawsuit alleging Alphabet‘s structure serves Page and Brin at the expense of the public investors.
Institutional Investors: Passive but Powerful
While the suit was eventually dismissed, debates continue around accountability. Unlike venture capital funds that target younger startups, institutional buyers have rigorous standards for company size, cash flows, and governance when selecting investments. Alphabet checks all those boxes while continuing to expand its dominance in digital ads, cloud, AI, and other sectors. Eric Schmidt was brought in as a more seasoned executive to oversee Google‘s rapid growth in the 2000s.
While public shareholders enjoy economic ownership, the founders still rule the roost and determine strategic direction. “Google co-founders Larry Page and Sergey Brin have been fantastically successful in the period in which they have had voting control. Economically but also in advancing the company and technology.” Beyond these three, only a handful of senior directors own Class B super-voting shares. Despite owning a smaller percentage of shares, Larry Page and Sergey Brin control Alphabet’s decision-making through their Class B shares, which carry 10 votes per share.
Ownership of YouTube and Google
Updates on VPN technology, security features, service providers, privacy issues, and changes in regulations affecting VPN usage. Instead, the company reinvests its profits into growth initiatives, acquisitions, and innovation. As CEO of Alphabet and Google, Sundar Pichai holds a smaller stake but plays a critical role in the company’s day-to-day operations and long-term strategy. The Fidelity Contrafund is one of the largest actively managed mutual funds and has consistently held Alphabet in its portfolio.
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Instead, the shareholders’ ownership, control, and voting rights in publicly traded companies are decided by the percentage of ownership. But unlike most public companies, Google does not have a conventional ownership structure. Understanding who actually controls and profits from Google requires digging deeper into its holding company structure and dual-class shares. Notable individuals who hold shares in Alphabet include Sundar Pichai, the CEO, and Larry Page and Sergey Brin, the co-founders.
Despite their large ownership, these investors are primarily passive, focusing on long-term growth rather than direct involvement in company decisions. However, their collective voice can influence corporate governance and strategic direction. Institutional investors collectively own over 70% of Alphabet’s shares making them significant stakeholders. In 2015, Google underwent a significant restructuring, creating Alphabet Inc. as its parent company. This move allowed Google to focus on its core businesses while giving other ventures room to grow independently. These funds are popular among retail investors seeking low-cost, diversified exposure to the stock market.
In 2021, The Wall Street Journal’s report claimed that a years-long program of Google, Project Bernanke, has been using data from past advertising bids to gain a competitive advantage over other ad services. This was reported in documents related to an antitrust lawsuit filed by 10 US states against Google in 2021. Google Chrome was launched in 2011, and Motorola Mobility was acquired by Google in 2012. The reason for this acquisition was to enter the hardware market as well.
As of February 2025, there were about 12.24 billion outstanding shares of Alphabet stock. Here is a rundown of the largest (known) individual and institutional shareholders. Vanguard has significant influence over the largest public companies.