Google Floats More Stock

[2005.09.14] Google Inc. had a secondary stock offering selling stock at $295 per share, raising $4.18 billion. [Google's secondary was the largest high-tech sale in nearly a decade.] GOOG closed at $303.00 on the day of the secondary stock sale.

Google's IPO (Initial Public Offering) was on 18 August 2004. The company raised $1.67 billion by selling 19.6 million shares at $85 per share.

Thanks to Google's secondary offering, the company's cash position (as of Sep-2005) was approximately $7 billion. For comparison purposes, Microsoft's balance sheet shows a cash position of $37,750 million. [Note: Microsoft has zero long-term debt (LTD), whereas Google's LTD was $291,000.]

Exercises

1. Write as a whole number how much Google's secondary offering raised.

2. Fill in the blank. Google's secondary offering raised $__________ million.

3. Calculate how many shares Google sold during its secondary offering.

4. Calculate the percentage increase between Google's IPO price and its secondary price.

5. No or Yes. Google's stock hasn't doubled since it went public.

6. Google versus Microsoft. Record which company has the most cash.

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More Google Stuff

• GDT::Math::BAB:: Google Used Pi To Determine Size of Secondary Offering
• GDT::Speaks:: About Google's 2004 Annual Report
• GDT::Computing::Bit:: Vint Cerf Becomes "Chief Internet Evangelist" at Google, Inc.

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Creator: Gerald D. Thurman [gdt@deru.com]
Created: 15 September 2005

This work is licensed under a Creative Commons License.