Google plans first-ever share buyback
Published: 12 Nov 2009 10:58 GMT
For the first time in its history, Google plans to buy back its own shares, following the completion of its acquisition of AdMob.
Google chief executive Eric Schmidt told Bloomberg of the plan on Tuesday, which assumes the deal passes regulatory scrutiny. Google announced plans on Monday to buy AdMob — one of the most successful mobile advertising companies — for $750m (£450m) in stock, making it the company's third-largest acquisition.
There has been speculation as to why Google used stock instead of dipping into its cash horde to make the deal, which has the effect of diluting the holdings of other shareholders. However, by buying up $750m of its own stock, it can offset the additional shares put on the market for AdMob employees.
See Google plans first ever share buyback on CNET News for full story.
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