Advertisement

Google Shares Peak After AOL Announcement, Fall in After Hours Trading

  • 381
    READS
Google Shares Peak After AOL Announcement, Fall in After Hours Trading

Google Shares Peak After AOL Announcement, Fall in After Hours Trading

Google shares took a roller coaster ride today as American optimism in the search engine advertising & information company peaked with finalized deals with AOL and Verizon.

Shares of Google GOOG reached $399 on Wednesday and then dropped in after hours trading by $14 after Google announced that they will be selling 5,300,000 shares of its Class A common stock, valued at approximately $2 Billion.

The issuing of the new shares in GOOG will partially meet the anticipated needs of index funds to purchase Google Class A common stock when Google is added to the S&P 500 Index at the close of trading on March 31, 2006.

From Google:

Proceeds from the offering will be used for general corporate purposes, including working capital and capital expenditures, and possible acquisitions of complementary businesses, technologies or other assets. Goldman, Sachs & Co. will act as the sole underwriter for the offering.

Google, which according to ComScore now holds a 42.3% share of the US search engine market – leading competition like Yahoo, MSN and Ask.com, came to terms with AOL yesterday, finalizing the acqusition of 5% of AOL.

From the Google AOL Entry into a Material Definitive Agreement Form Filing (thanks Barry):

The Letter Agreement sets forth the general terms upon which Google would, in exchange for $1 billion in cash, acquire a 5% equity interest in AOL through an investment in a wholly owned subsidiary of Time Warner that will own all of the outstanding equity interests in AOL. On March 24, 2006, the parties signed definitive agreements governing this $1 billion investment in AOL and Google expects that the investment will close in the second quarter of 2006.

CategorySEO
ADVERTISEMENT

Subscribe to SEJ

Get our daily newsletter from SEJ's Founder Loren Baker about the latest news in the industry!

Ebook

Loren Baker

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ... [Read full bio]

ADVERTISEMENT
Advertisement
Read the Next Article
Read the Next