Google plans to sell up to 5.3 million shares of Class A common stock, which could would raise nearly $2.1 billion, based on Wednesday's closing price.
The plan, included in documents filed Wednesday with the U.S. Securities and Exchange Commission, marks the search company's second follow-on stock offering since going public less than two years ago.
Google expects to use the proceeds from the offering for "general corporate purposes, including working capital and capital expenditures, and possible acquisitions of complementary businesses, technologies or other assets," according to the filing.
The company also said in the filing that it had "no current agreements or commitments with respect to any material acquisitions."
"We estimate that we will receive net proceeds of $2,093 million from our sale of the 5,300,000 shares of Class A common stock in this offering, based upon our assumed public offering price of $394.98 per share, after deducting estimated offering expenses," Google said in its preliminary prospectus supplement, which may be changed. The filing did not say when the offering would occur, but suggested it could happen periodically.
Google shares closed the day at $394.98, up nearly 5 percent. The Mountain View, Calif.-based company, which went public in August 2004, had about $8 billion in cash at the end of 2005.
As required, the company listed risks associated with its business that could affect the net proceeds from the offering.
"The trading price of our Class A common stock has been volatile since our initial public offering and will likely continue to be volatile," it said. "For example, during the past 12 months, the sales price of our Class A common stock has fluctuated from a high of $475.11 per share to a low of $177.64 per share. The trading price of our Class A common stock may fluctuate widely in response to various factors, some of which are beyond our control."
In September, Google
priced its first follow-on stock offering at $295 per share. It raised $4.18 billion in what underwriters said at the time was the largest high-tech secondary sale in nearly a decade.
It takes a lot of money to support a first class executive chef and staff who travel the world looking for white truffle oil. But seriously,shouldn't a company with this much cash have more than a search engine and an assemblage of beta gadgets. How many more $billions will it take for Google to actually move Gmail out of beta, for instance.
Is Google sitting on the secret to quantum computing? Do they plan to end poverty in America by offering free WiFI to Teddy Kennedy? Are they merely using mundane pieces of software to throw us all off the scent? Skeptical investors want to know.
Good news near term if your Google but perhaps not so good news to their existing shareholders especially those on the roller coaster ride to reality :-) $200/share in 3 months?
It takes a lot of money to support a first class executive chef and staff who travel the world looking for white truffle oil. But seriously,shouldn't a company with this much cash have more than a search engine and an assemblage of beta gadgets. How many more $billions will it take for Google to actually move Gmail out of beta, for instance.
Is Google sitting on the secret to quantum computing? Do they plan to end poverty in America by offering free WiFI to Teddy Kennedy? Are they merely using mundane pieces of software to throw us all off the scent? Skeptical investors want to know.
Good news near term if your Google but perhaps not so good news to their existing shareholders especially those on the roller coaster ride to reality :-) $200/share in 3 months?
Web giant is spending $120 million to beef up its Mountain View, Calif., headquarters, according to filings with the city reviewed by the San Jose Mercury News.
Tor's "obfsproxy" technology would make encrypted data look innocuous and let it dodge government censors. That could help citizens in Iran reach blocked sites as antigovernment protests reportedly loom.
MIT creates a simulation to celebrate the 50th anniversary of Spacewar. A relic of the early days of minicomputers, it was one of the first computer video games and set the stage for many others, including Asteroids.
Is Google sitting on the secret to quantum computing? Do they plan to end poverty in America by offering free WiFI to Teddy Kennedy? Are they merely using mundane pieces of software to throw us all off the scent? Skeptical investors want to know.
Is Google sitting on the secret to quantum computing? Do they plan to end poverty in America by offering free WiFI to Teddy Kennedy? Are they merely using mundane pieces of software to throw us all off the scent? Skeptical investors want to know.
$2,093 Million = $2.093 Billion
$2,093 Million = $2.093 Billion