Even after amassing US$8 billion in cash by the end of 2005, Google is looking for more, announcing on Wednesday that it plans to issue an additional 5.3 million shares of stock.
The new shares would bring in US$2.1 billion based on the value of Google’s stock at the close of trading on Wednesday.
The sale is intended in part to meet the needs of index funds to purchase Google stock once Google is added to the S&P 500 Index, the company said. Google will be added to the S&P 500 Index at the close of trading on Friday.
Google will use the money raised for working capital, expenses and possible acquisitions of complementary businesses, technologies or other assets, it said.
Since going public in 2004, Google has grown flush with cash. The initial public offering raised $1.7 billion. It was followed by an offering in September last year of more than 14 million shares that raised an additional $4 billion.
Google has used some of the cash to make a handful of acquisitions over the past year. In early March, Google purchased online word processing applicator developer Writerly. Earlier this year, Google bought dMarc Broadcasting, a developer of a radio advertising platform, for $100 million plus additional future payments that could reach $1 billion. Google also recently purchased 3D design company SketchUp and invested $1 billion in America Online late last year.
Google continues to lead the search market. It handled 41 percent of searches in the United States in January, up six percentage points, according to recent research offered by ComScore Networks. Yahoo took the number-two spot with almost 29 percent of searches, and MSN came in third with almost 14 percent, based on the ComScore report.
-Nancy Gohring, IDG News Service
For related news coverage, read Google’s Upcoming S&P Listing Boosts Stock, Google Preps Free Nationwide Wi-Fi and Google to Launch Financial Website.
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