Friday, August 19, 2005

Google to sell $4 billion in stock - 08/19/05

Google to sell $4 billion in stock
Internet search leader may use the proceeds for possible acquisitions; says nothing is in the works right now.
By Matthew Fordahl / Associated Press


SAN JOSE, Calif. -- A year after its blockbuster debut as a public company, Google Inc. said Thursday it plans to offer another 14.2 million shares, worth about $4 billion, as competition heats up with rivals Yahoo Inc. and Microsoft Corp.

The Internet search leader said it will use the proceeds for "general corporate purposes," including possible acquisitions. Google said that it currently has no agreements or commitments to make a material purchase.

Google's stock price has more than tripled since the August 2004 initial public offering at $85.

Its stock fell $5.30, or 1.9 percent, to $279.80 in Thursday trading on the Nasdaq.

The secondary offering would raise nearly 2.5 times the $1.67 billion generated by the first IPO.

"The stock is at a nice price and they should be taking some money as a result," said Mark Stahlman, an analyst at the investment bank Caris & Co.

Google spokesman David Krane declined to comment further on the company's filing with the Securities and Exchange Commission.

"Literally, the document speaks for itself," he said in an e-mail.

Read the full article here : Google to sell $4 billion in stock - 08/19/05

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