Google (GOOG) To Implement First Ever Share Buyback - Broadpoint.AmTech

November 11, 2009 2:59 PM EST

Broadpoint.AmTech analyst Benjamin Schachter said Google (Nasdaq: GOOG) will soon implement its first ever stock buyback to offset AdMob dilution.

Schachter, "GOOG plans to use cash to buy back $750mm worth of its common stock (or approximately 1.32mm shares at current levels) in order to offset dilution from the upcoming all-stock acquisition of AdMob. In a recent press interview, GOOG CEO Eric Schmidt indicated a buy-back was planned, but he provided no specific details about timing, etc. We have confirmed the buy-back intention with the company, but no specifics were given on timing or method."

Schachter notes that to date, GOOG has never repurchased its own stock despite the approximately $22bn (~$69 per share) in cash and equivalents on its balance sheet.

Schachter said this move may not be an indication that GOOG will now commence a regular buy-back program, but notes that is is interesting to see that the company is at least willing to return cash to shareholders in this way.

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