Alphabet announced an $80 billion equity capital raise. The package includes a $40 billion at-the-market stock-sale program and a $10 billion investment from Berkshire Hathaway. The move gives the Google parent a massive cash infusion.
Details of the capital raise
The $80 billion total is split into two parts. The first is a $40 billion at-the-market (ATM) program. That lets Alphabet sell shares gradually into the open market at current prices. The second is a $10 billion direct investment from Berkshire Hathaway. The remaining $30 billion comes from other equity offerings, though the company hasn't detailed those.
The at-the-market program
An ATM stock-sale program is a common way for large companies to raise cash without flooding the market with a single block of shares. Alphabet can sell shares over time, depending on demand and market conditions. The $40 billion ATM is one of the largest ever announced.
Berkshire Hathaway's involvement
Berkshire Hathaway is putting $10 billion into Alphabet. The conglomerate, led by Warren Buffett, has been increasing its stake in tech companies in recent years. The investment is a notable endorsement from one of the world's most respected investors.
Alphabet has not said exactly when the ATM sales will begin or how it plans to use the proceeds. The company also hasn't disclosed the terms of the Berkshire investment, such as whether it involves common stock or a different security.
