Google Expects to Raise $4B in Stock Sale

Share this article:
Google, which had its IPO a year ago today, will sell 14.2 million new shares to raise money for possible acquisitions and general business expenses, according to a document the company filed yesterday with the Securities and Exchange Commission.


However, the Mountain View, CA, company said it has "no current agreements or commitments with respect to any material acquisitions."


Google stock fell 1.79 percent on the news yesterday, closing at $279.99. At that price, the offering would raise about $4 billion. Google's stock price was as high as $317 in the past month.


Google already has just under $3 billion in cash and short-term investments on hand, so it is unclear what it needs money for unless it's shopping for a large acquisition. Analysts speculated yesterday that the company is eyeing China's Baidu.com search provider, of which it already owns 2.6 percent. Google officials were mum because the company is in a quiet period related to the offering.


Google earned $399.12 million and had revenue of $3.19 billion last year.


Morgan Stanley, Credit Suisse First Boston and Allen & Co. are the offering's underwriters.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Mobile Spend Vaults 76 Percent in First Half, IAB Reports

Mobile Spend Vaults 76 Percent in First Half, ...

Overall Internet ad revenues escalate by 15% to $23 billion, also fueled by increased activity in social media and video.

Top 20 Percent Is Twice as Good at Converting as the Rest

Top 20 Percent Is Twice as Good at ...

There are five reasons elite marketers trounce the competition: testing, targeting, spending, mobilizing, and democratizing.

Ecstatic Over Programmatic

Ecstatic Over Programmatic

Ads purchased programmatically will double this year to $10 billion, and then again to $20 billion in 2016, a new study forecasts.