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Google priced its follow-on offering at $295. The 14-million-share offering raises over $4 billion for the search engine. This is larger than its IPO last year which raised $1.7 billion on 19.6 million shares. Impressively, the stock is up since the follow-on offering was announced.

Google hasn’t given specific plans for the money. Since the company is cash-flow positive and it already has a sizable cash position, I assume Google will use the money for acquisitions. Yahoo and eBay have been busy on the acquisition front. Microsoft has $38 billion in cash, while eBay, Google and Yahoo all have about $3 billion. A lot of people think Google will now buy Baidu. Google already owns a small stake of Baidu.

Posted by edelfenbein at September 15, 2005 9:40 AM