Google (NASDAQ:GOOGL)(NASDAQ:GOOG) has lined up an $800 million COVID-19 relief package. Notably, the company’s aid is mainly in the form of advertising credit. The credit will benefit small businesses and organizations working to keep the public informed about how to stop the spread of the deadly coronavirus.
Facebook (NASDAQ:FB) and Apple are the other big tech companies that have announced COVID-19 relief packages. Facebook, has committed $100 million in support to news organizations hurt by the pandemic. Also, the company has committed $100 million in support to small businesses affected by the coronavirus.
Meanwhile, Apple has lined up a $15 million lifeline for struggling individuals and businesses.
Google’s $800 million COVID-19 aid
Google’s $800 million COVID-19 relief package will benefit several groups around the world. First, the company will donate $250 million in free ads to the World Health Organization and government agencies around the world to share information about curbing the spread of coronavirus.
The company has committed $340 million in ad credits to small businesses. Also, Google will allocate $20 million in free ads for organizations that want to support small businesses.
Google will offer $20 million in Google Cloud credit for research work on coronavirus. Additionally, the company has set up a $200 million fund to help small businesses access capital during the crisis.
Since Google’s $800 million COVID-19 package is mainly in the form of free ads, it shouldn’t cut deep into Alphabet’s cash reserve.
Alphabet has about $120 billion in cash
Google parent Alphabet exited 2019 with about $120 billion in cash reserve. The company has been investing the cash to develop its cloud computing business. Specifically, the company has been working to expand its cloud capacity with new data centers and expanding existing ones. Alphabet invests the cash to nurture its other bets like Waymo, which has a huge growth opportunity ahead. A portion of Alphabet’s cash goes into financing its stock repurchase program.
Now, some of Alphabet’s cash will be used for Google’s $800 million COVID-19 aid package. The relief package will partially come from Alphabet’s cash reserve.