Google has mad cash

Google is selling 5.3 Million class A shares, raising an estimated $2 billion. Whoa.

The decision to sell more shares to raise cash that could be used for operations does raise the question why Google needs to do so, since the search firm had $8 billion in cash and cash equivalents, and generated $2.45 billion in net cash from operations in 2005. – Marketwatch

Hrmmm. If I were Google, what would I do with $12 billion ?
After I bought an island made of tortilla chips, surrounded by a sea of queso, I’d be building my own internet. Sounds dumb ? Check this out :

Why should they (content providers)be allowed to use my pipes? The Internet can’t be free in that sense, because we and the cable companies have made an investment and for a Google or Yahoo! or Vonage or anybody to expect to use these pipes [for] free is nuts! -Ed Whitaker SBC (now AT&T) CEO

So Goggle is making noise about free public wifi in San Fran. There, they have an effective businees model to serve their content and not go through the geriatric phone company pipes. This isnt exactly left-field either, a lot has been written about google buying up dark fiber for just such a purpose.

How much would it take to implement this strategy in major cities around the country? Say $12 Billion ? It bears watching.

And ok, this two-tier internet thing is stupidly confusing (I first started getting intrested at Burnie Burns keynote at SXSW). If you want a really good explanation, check out this post on A most excelent explainer of how to pull revenue from both ends of the pipe.