Google (GOOGL) Buys A $46M Stake In This Company

Care.com, (that company with the commercial that features a little girl who talks about what kind of babysitter she wants) just got a huge investment.

Google is now the company’s largest investor after it purchased a $46.4 million stake in the company. This is equal to 17% of the website’s market value.

Shares of Care.com went flying in extended trading shortly after. The stock ran from $1.53 to $10 shortly after the news.
Google has been a Care.com customer since 2011, providing family care services to its employees, according to the press release.

Under the agreement, Google Capital purchased a new series of convertible preferred stock at an initial conversion price of $10.50, a 21 percent premium to the 30-day average as of June 27. The stock includes a 5.5 percent annual dividend.

Care.com (CRCM) provides a marketplace that connects caregivers with families. The site claims to serve 11 million families in 16 countries.

Disclaimer: We have no position in Alphabet Inc Class A (NASDAQ: GOOGL) or Care.com (NYSE: CRCM) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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