For nearly three decades, Google has been steeped in the lore of Silicon Valley.
Larry Page and Sergey Brin, two Stanford University graduate students, created the search engine in 1998 and built the start-up out of a friend’s garage in Menlo Park, Calif. Over time, Google became a nearly $4 trillion juggernaut, helping to cement the Northern California region as the global epicenter of the internet industry.
Now, Mr. Brin and Mr. Page are cutting some ties with the state where they made their fortunes.
In the 10 days before Christmas, an entity connected to Mr. Brin, 52, terminated or moved 15 California limited liability companies that oversee some of his business interests and investments out of the state, according to documents seen by The New York Times. Seven of the companies — including those that appear to manage one of Mr. Brin’s superyachts and his interest in a private air terminal at San Jose’s international airport — were converted into Nevada entities.
Mr. Brin is joining Mr. Page, 52, in reducing his California presence. More than 45 California limited liability companies associated with Mr. Page filed documents last month to either become inactive or move out of the state, according to state records. A trust with ties to Mr. Page also purchased a $71.9 million mansion in Miami’s Coconut Grove neighborhood this week, according to a deed seen by The Times.
Another entity jointly managed by Mr. Brin and Mr. Page moved out of California and to Nevada on Christmas Eve, according to a filing seen by The Times.
The Google founders’ shrinking connections to California underscore the impact of a potential ballot measure that would affect the state’s wealthiest residents. Proposed by a health care union, the measure calls for Californians worth more than $1 billion to pay a one-time tax that would be equivalent of 5 percent of their assets. If the measure gains enough signatures to reach the state ballot in November and wins approval, it would retroactively apply to anyone who lived in the state as of Jan. 1 and they would have five years to pay it.
The potential wealth tax has already caused some California billionaires to establish more ties outside the state. Last month, the venture capitalist Peter Thiel announced that he opened an office for his family investment firm in Miami. David Sacks, the tech investor and White House adviser on artificial intelligence and cryptocurrency, unveiled a new office for his venture capital firm, Craft Ventures, in Austin, Texas.
But the actions of Mr. Brin and Mr. Page stand out because of their wealth — their combined net worths total more than $518 billion, as estimated by Forbes — and how closely identified they are with California. While both stepped down from day-to-day management of Google and its parent, Alphabet, in 2019, they remain on the board of the company and Mr. Brin has recently become more active in Google’s A.I. efforts.
Mr. Brin and Mr. Page still have connections to California, including homes across the state. It’s unclear how much time they will be spending in the state this year.
A representative for Mr. Brin declined to comment. Google and representatives for Mr. Page did not respond to requests for comment. The Wall Street Journal previously reported on Mr. Page’s Miami home purchase and Business Insider reported on some details of the shifting of Mr. Page and Mr. Brin’s companies.
The ballot initiative, which was proposed by the Service Employees International Union-United Healthcare Workers West to offset federal budget cuts that will affect California’s health care system, has elicited a broad spectrum of reactions.
Gov. Gavin Newsom has called the measure bad policy, arguing that it will lead billionaires to simply move to tax-friendlier states. Representative Ro Khanna, a Democrat whose district includes part of Silicon Valley, has defended the initiative, drawing criticism from tech investors and entrepreneurs who are discussing funding a challenger to his seat.
Others have said the proposed tax could drive entrepreneurs and investors out of California, which could then stifle innovation. Reid Hoffman, the billionaire co-founder of LinkedIn and a Silicon Valley resident, said the measure was a “horrendous idea” that might force founders and executives to sell shares in companies that they run simply to fulfill the tax obligation.
“Poorly designed taxes incentivize avoidance, capital flight, and distortions that ultimately raise less revenue,” Mr. Hoffman posted on social media on Wednesday. Mr. Hoffman’s spokeswoman said he was not available for comment.
Jensen Huang, the chief executive of Nvidia and one of California’s wealthiest men, was among the few billionaires who publicly said they accepted the wealth tax. “We chose to live in Silicon Valley and whatever taxes they would like to apply, so be it,” he said in an interview with Bloomberg Television this week, adding that he was “perfectly fine” with it.
An Nvidia spokesman declined to comment.
In a statement, Suzanne Jimenez, chief of staff at Service Employees International Union-United Healthcare Workers West, said an exodus of billionaires from California was overblown.
“The overwhelming majority of billionaires have chosen to stay in California past the Jan. 1 deadline,” she said. “Only a very small percentage left before the deadline, despite weeks of Chicken Little talking points claiming a modest tax would trigger a mass departure.”
Kirsten Noyes and Georgia Gee contributed research.
Ryan Mac covers corporate accountability across the global technology industry.
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