Google approves stock split, tops profit target

(CBS/AP) NEW YORK — Google (GOOG) plans to split its stock 2-for-1 in part to preserve its leadership's voting power.

The online search leader says it is issuing a new class of stock to shareholders, but the new shares won't have any voting power. All current stockholders will get shares in the new Class C stock, which will be listed on Nasdaq.

Google says the split is something investors have been asking for. In addition, employees given Google stock in the future will get the non-voting share, allowing voting power to remain with existing shareholders.

Investors will vote on the proposed split, which is expected to pass, in June.

"It's important to bear in mind that this proposal will only have an effect on governance over the very long term," CEO Larry Page and fellow co-founder Sergey Brin wrote in a letter. "It's just that since we know what we want to do, there's no reason to delay the decision."

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Google reported earnings of $2.89 billion, or $8.75 per share, in the first quarter. That's up from $1.8 billion, or $5.51 per share, a year earlier. Excluding items, Google says it earned $10.08 per share. That's higher than the $9.66 expected by analysts polled by FactSet. The company reported revenues of $10.65 billion, up 24 percent from the year-ago quarter.

"Google had another great quarter with revenues up 24 percent year on year," Page said in a statement. "We also saw tremendous momentum from the big bets we've made in products like Android, Chrome, and YouTube. We are still at the very early stages of what technology can do to improve people's lives, and we have enormous opportunities ahead."