RR Donnelley error reduces Google value by $22 billion

October 19, 2012

Printer solutions company distributes an unfinished financial release revealing Google’s latest quarterly results to be far below expectations.

An accidental email leaked from printer solutions company RR Donnelley has resulted in a nine percent decline in stock value for Google, resulting in $22 billion (€16 billion) and the ceasing of trading, reports the Guardian.

The document revealed that Google missed its expected profits and a substantial slowdown in revenue growth for its search engine advertising business, citing a fall in “cost per click” – stated as the amount advertisers pay when clicking on Google adverts.

The report also began with the words “PENDING LARRY QUOTE”, allocating a space for Google CEO Larry Page, renowned for putting the best spin on financial figures. Google claim that RR Donnelley filed its draft third quarter results “without authorisation”.

The search engine giant was forced to close trading over the leak of the third quarter results as shares declined by nine percent. Upon resuming trading, shares closed the day down eight percent.

RR Donnelley remarked that it was “fully engaged in an investigation to determine how this event took place and are pursuing our first obligation – which is to serve our valued customer”. The printer solutions company also saw its shares fall, but by a more moderate two percent.

RR Donnelley is currently seeking a jury trial against printer manufacturer Xerox, accusing the OEM of patent infringement over four patents covering colour printer technology.

Categories : Rank 2

Tags : Business Google RR Donnelley