Like its archrival Apple, Google is giving shareholders a carrot. While Apple (AAPL) chose to share some of its cash hoard through a dividend, Google (GOOG) is doubling the number of shares each investor will own. But the founders of the company will maintain a controlling interest, and they have made it clear that their growth strategy hinges on mobile.
During yesterday’s first quarter earnings call, Google CEO Larry Page called mobile the “backbone” of Google’s advertising strategy and said that he expects mobile ads to eventually contribute more to the company’s bottom line than desktop computer ads.
Page has also made it clear that his company’s $12.5 billion purchase of Motorola Mobility is about more than patents. “We are excited about the opportunities to build great devices capitalizing on the tremendous success and growth of Android and Motorola’s long history of technological innovation,” Page wrote in a letter to shareholders earlier this month.
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Google earned $10.08 per share in the first quarter, beating analysts’ expectations. Profit was $2.89 billion on revenue of $8.14 billion, net of commissions.
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