Alphabet Raises $85B via Equity Including 6% Yield Convertibles

On June 16, 2026, Alphabet completed an $85 billion equity issuance, with roughly 20% structured as mandatory convertible preferred shares (GOOGM/GOOGN) offering an initial yield above 6%. These securities provide short-term income exposure to Alphabet’s AI growth but automatically convert into Class A or Class C common stock on May 15, 2029, after which the elevated yield disappears. Conversion ratios are capped at 0.1408 and 0.1421 shares respectively, limiting both upside and downside relative to the underlying common stock. The common shares themselves carry only a modest $0.22 quarterly dividend, equating to a 0.24% yield. The new preferreds therefore appeal mainly to income-focused investors seeking temporary high yield rather than long-term common-stock holders.