So Google is raising another $2-billion to meet demand as it prepares to join the S&P 500. Why? The company already has a $8-billion war chest so it's not like it needs the money. And if index-focused investors have obligated to buy stock for their portfolios does it mean Google has to play nice and accommodate them? So what's Google thinking? The last time the company tapped the markets for cash, it used $1-billion to buy a 20% 5% a stake in AOL. Susquehanna Financial Group analyst Marianne Wolk thinks Google could be looking to enhance its presence in Asia through a strategic investment or acquisition. Another possibility, she said, is a “massive investment” in storage for Web developers along the lines what Amazon is doing with its S3 Storage Service. Then, there's Wi-Fi and the rumours Google is looking to launch an advertising-support, nation-wide network. In any event, Google now has $10-billion of cash on the balance sheet so something has to be going on. Given how close Larry and Sergey hold their strategic cards to the vest, we'll likely only find out when the a deal is unveiled.

Update: BuyGoogle has an intriguing – and detailed post – on whether Google might use its cash hoard to acquire Amazon.com.