What will they do with that money?
Few analysts expect Google to make a huge acquisition with the money raised in the stock offering. Instead, Google has said it plans to continue making small acquisitions in the numerous areas where it is developing products. The company said it “may use the proceeds of this offering for acquisitions of complementary businesses, technologies or other assets” but added that it had no commitments or agreements in place to buy any companies.
It costs a lot of money to give away services for free.