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Friday, April 13, 2012

Google Announces Stock Split, Touts Google+ as 'Social Spine'

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During an earnings call that also included the announcement of a stock split, Google chief Larry Page today touted Google+ as the company's "social spine" that helps tie together the search giant's various products.

"Once you're logged in, you're just using one Google, not a series of disconnected products," Page said.

Oddly, Page said he wanted to be specific about Google+ uptake, but then said only that 170 million people have "upgraded" to the social network without really explaining what that meant. During a January earnings call, Page said specifically that Google+ had 90 million users.

Since taking over as CEO for the second time last year, Page said he has also focused on "creating a simpler and more intuitive experience across Google." Technology should do the heavy lifting, "so users can get on with what makes them happiest – life."

He pointed to Chrome for Android as an example of this simplicity, as well as Google Play.

When asked about tablets, Page said Google was "very excited" about the form factor. He alluded to the "strong competition" from Apple's iPad, but said there has been "a lot of success on lower-priced tablets that run Android," like the Kindle Fire. "We definitely believe there's going to be a lot of success at the lower end of the market … and it's definitly an area that we think is important and we're quite focused on," Page said.

On the financial front, Google reported revenue of $10.65 billion for the quarter, up 24 percent from the same time period last year, and up slightly from $10.58 billion from the last quarter. Profit landed at $3.39 billion, up from $2.3 billion last year and $2.71 billion last quarter.

Google also announced plans for a stock dividend that "will have the basic effect of a two-for-one stock split."

That is "something many of our investors have long asked us for," Page and co-founder Sergey Brin wrote in a founders letter. "These non-voting shares will be available for corporate uses, like equity-based employee compensation, that might otherwise dilute our governance structure."

They acknowledged that the move might not be popular, but said "having the flexibility to use stock without diluting our structure will help ensure we are set up for success for decades to come."

Page and Brin denied that the move was for any other reason. "We don't have an unusually big acquisition planned, in case you were wondering," they wrote.

For more from Chloe, follow her on Twitter @ChloeAlbanesius.

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