NEW YORK, Aug 9 (AFP) - Google on Monday announced it will give its Internet search-engine rival Yahoo 2.7 million shares worth roughly 300 million dollars to settle a patent and stock dispute.
Mountain View, California-based Google, which is girding for its stock market debut, also agreed to license technology from a unit owned by the Sunnyvale, California-based Yahoo.
According to a Google filing with the Securities and Exchange Commission, the company agreed to issue Yahoo 2.7 million shares of its common stock in payment for the license as part of the agreement.
Google has estimated its Class A shares will be priced between 108 and 135 dollars a share, making Yahoo's newly awarded shares worth between 291 million and 364 million dollars.
Yahoo already owned nearly 5.5 million shares in Google Class B stock.
According to the latest filing, Yahoo intends to sell a combination of Class A and B shares totaling 1.6 million shares at the time of Google's initial public offering (IPO), which is expected sometime in August.
In issuing more shares to Yahoo, Google is increasing the size of its offering to a total of 25.7 million shares, up from 24.6 million shares previously.
Under the new terms, IPO proceeds would climb to a maximum of 3.47 billion dollars, against the previous level of 3.3 billion dollars.
In their settlement, Yahoo and Google also resolved a stock dispute. A warrant from a June 2000 services partnership gave Yahoo the right to buy 3.7 million shares of Google stock.