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Originally Posted by ur my bitch
Unfortunately, that's not how it works
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Unfortuneately that is how it works, I'm not talking about insiders I'm talking about Google itself raising capital by issuing more equity.
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Google sells $4.18 billion in stock
Web search leader Google priced a follow-on stock offering at $295 per share, raising $4.18 billion in the largest high-tech secondary sale in nearly a decade, underwriters said on Wednesday. Google went public in August 2004 and announced the follow-on offering in a regulatory filing last month. It had previously said it expected $4.11 billion in net proceeds from a shelf offering of 14.16 million Class A shares.
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At the time they were sitting on nearly $1billion in cash with no obvious uses for it, taking on cash is a serious move for a corporation and you only do it in 2 circumstances:
1) You have a good use for it
or
2) It's cheap
In this case, google itself viewed its stock price as overvalued and saw an opportunity to raise $4 billion even though it had no major acquisitions in mind.