Mar 30, 2006 113 reads by Navneet Kaushal

The recent news of the search engine market which has come up today is that Google's Shares dropped after a tremendous increase in their value. Don't be surprised. This happened due to an overwhelming American response in the search engine advertising and information company regarding AOL's and Verizon's collaboration with each other.

It is said that the value of Google's shares reached at $399 on Wednesday, but had a drastic drop by $14 within few hours. Wo! quite a lot difference. The fall in their market value occurred after an official announcement made by Google that they would be selling 5,300,000 shares of its class A common stock at an unimaginable price of $2 Billion.

The purpose behind issuing the new shares in Google will probably meet the expected requirements of index funds for the purchase of Google Class A common stock. Also, Google is added to the S&P 500 Index by the close of trading on March 31,2006.

Google, as stated by Comscore is the leader in terms of the search market share (42.3%) of the US search engine market, now comes down to terms with a finalized deal with AOL yesterday.

As quoted by Google AOL Entry into a Material Definitive Agreement Form Filing:

"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."

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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