Search maestro and current stock market darling Google Inc. has reportedly told the US Securities and Exchange Commission it plans to sell a further 14.2 million shares of class A common stock.
At current market prices that would raise a further US$4 billion for the company. It could add that to the US$3 billion it already has in the bank, but it’s unclear what it plans to do with US$7 billion in cash.
The company says it plans to use the money raised “for general corporate purposes, including working capital, capital expenditures and possible acquisitions of other businesses or technologies”.
It seems the company doesn’t have any particular acquisitions in mind at present though and will put the proceeds into highly liquid, investment-grade securities.
Google’s share price currently hovering just under the US$300 slipped three percent on news of the new raising.