Please clarify 300M shares = $300 Billion fund raising or not?
When Google issues 300 M useless shares in a power grab, are they actually raising capital and will float the new stock? THAT is INSANE !!! a HUGE mistake.
They must be seeing terrible financing and terrible volatility 10 years out, and are getting the financing up front before value collapses. OBVIOUSLY the MBA's see it as a window before a bubble bursts.
Now, if each GOOG share owner gets an extra share, its dilution in quantity but relative to class B it is, and not any change in class A or C.
If indeed they are going to try and raise another $300 B, by issuing new shares, that is in effect discounting future equity valuations by 100% or more. Which would have made Google larger than APPLE or EXXON, where by macro economic effects wouldn't allow share prices to appreciate.
Thus I would easily suspect a 25% correction here within weeks. Easily $800 a share target for 2015 at best.
It is not fundraising- Each holder of GOOG will be given another class C share which acts a special dividend and effectively creates a stock split (because there are now twice as many shares under ticker GOOG without raising cash)
See the bloomberg piece on it all. Lays it out fairly straight. It's not raising any funds. It's just locking in voting control for the owners, board. What it does is create a lot of useless admin expense and accounting complexity.