Google IPO

Hooper · 10-24-2003

Google Said to Consider Online Auction of I.P.O. Shares

October 24, 2003
By RICHARD WATERS, FT.com

Google is considering holding a massive online auction of
shares early next year in an initial public offering that
investment bankers predict could value the internet
search-engine company at more than $15bn.

An electronic auction would be designed to prevent a
recurrence of the sort of financial scandals that have
engulfed Wall Street since the collapse of the dotcom
bubble, according to a person close to the company.

It could also slash the underwriting fees paid to
investment banks, the person added, and in the process help
to break Wall Street's hold on the lucrative IPO business.

A Google IPO has been one of the most eagerly anticipated
events on Wall Street and in Silicon Valley since the
dotcom bust. Though only five years old, the search-engine
company has avoided the traps that caught many early dotcom
companies.

"It will be worth $15bn-$25bn," said one person who has
been involved in the process. "This has never happened
before."

Other "hot" IPOs, from Apple Computer in 1980 to Netscape
in 1995, have generally involved unprofitable companies,
this person said. Google, by contrast, is highly profitable
and has grown into a large global business.

Though the company does not disclose financial information,
its profits are growing rapidly and are reckoned to be
running at an annual rate of about $150m on revenues of
$500m.

Google executives, led by George Reyes, chief financial
officer, met a number of leading investment bankers last
week to sound them out about an IPO. The meetings marked
the start of a process that is likely to lead to a stock
market listing by about March next year, a person familiar
with the IPO said. The early discussions have not touched
on how much Google is worth.

The company has instead sounded out bankers about how the
share sale should be handled. Executives have raised the
possibility of using alternative methods, such as holding
an online auction.

An auction would allow all investors to bid for Google's
shares directly, rather than leave it to an investment bank
to decide on the price of the shares and who should receive
them.

One person close to Google complained that Wall Street's
existing method of selling shares allowed banks to set the
prices of dotcom stock issues deliberately low, then hand
them to favoured investment clients.

Many of the shares were sold quickly, or "flipped", as
share prices soared on the first day of trading.

However, investment bankers warned that a pure online
auction would risk setting an unrealistically high price
for Google's shares, since there would not be enough stock
available to meet the massive demand from private investors
captivated by the prospect of a new dotcom gold-rush.

"They could get a $100bn" stock market value, said one
person involved.

"However, all the shares would end up with Aunt Agatha in
Des Moines and Uncle Milt in Pittsburgh and there would be
no real public market at all."

Frank Quattrone, the star investment banker who controlled
many of the dotcom stock allocations, is awaiting the
verdict in a trial that sprang out of the scandals.

He was accused of destroying evidence to hamper an
investigation into the affair.

http://www.nytimes.com/financialtimes/busi...c25454cf8dcb697

Carrie · 10-24-2003

This is hilarious.
Just when a huge weakness in Google's entire engine has been blatantly exposed (blogs and their google bombs), they decide to go public.
Sounds to me like they're trying to work up money before they become the next has-been of the search engine graveyard. Nothing like hitting the road with a nice wad a cash in your pocket.

Hooper · 10-24-2003

carrie, most investors dont know what a blog or googlebomb is.

and i gotta admit.. i know what a blog is, but not how or why it's important to google.. and i also have no idea what a googlebomb is.

all i know is they are everywhere like a virus and i want some of that ipo!

Trev · 10-24-2003

I know what an ICQ bomb is but I've yet to see a googlebomb...

Rolo · 10-24-2003

$15bn-$25bn and even up to $100bn for a young company with $150m profits on revenues of $500m - all made in a fast changing industry

I thought people had learned from the former dotcoms?

Oh well, I guess we will have some new faces on Forbes list in 2005

Pornwolf · 10-24-2003

There will be quite a few millionaires and Billionaires made that day. Good for them. It's time to cash out anyway cause the future is not looking too bright.

Richard N. Bush · 10-24-2003

A googlebomb sounds like something you'd see in a Bruckheimer movie.

Mike AI · 10-24-2003

Quote:

Originally posted by Richard N. Bush@Oct 24 2003, 04:44 PM
A googlebomb sounds like something you'd see in a Bruckheimer movie.

HAHAHA

10-24-2003	#1
Hooper Members Join Date: Oct 2002 Posts: 1,156	Google Said to Consider Online Auction of I.P.O. Shares October 24, 2003 By RICHARD WATERS, FT.com Google is considering holding a massive online auction of shares early next year in an initial public offering that investment bankers predict could value the internet search-engine company at more than $15bn. An electronic auction would be designed to prevent a recurrence of the sort of financial scandals that have engulfed Wall Street since the collapse of the dotcom bubble, according to a person close to the company. It could also slash the underwriting fees paid to investment banks, the person added, and in the process help to break Wall Street's hold on the lucrative IPO business. A Google IPO has been one of the most eagerly anticipated events on Wall Street and in Silicon Valley since the dotcom bust. Though only five years old, the search-engine company has avoided the traps that caught many early dotcom companies. "It will be worth $15bn-$25bn," said one person who has been involved in the process. "This has never happened before." Other "hot" IPOs, from Apple Computer in 1980 to Netscape in 1995, have generally involved unprofitable companies, this person said. Google, by contrast, is highly profitable and has grown into a large global business. Though the company does not disclose financial information, its profits are growing rapidly and are reckoned to be running at an annual rate of about $150m on revenues of $500m. Google executives, led by George Reyes, chief financial officer, met a number of leading investment bankers last week to sound them out about an IPO. The meetings marked the start of a process that is likely to lead to a stock market listing by about March next year, a person familiar with the IPO said. The early discussions have not touched on how much Google is worth. The company has instead sounded out bankers about how the share sale should be handled. Executives have raised the possibility of using alternative methods, such as holding an online auction. An auction would allow all investors to bid for Google's shares directly, rather than leave it to an investment bank to decide on the price of the shares and who should receive them. One person close to Google complained that Wall Street's existing method of selling shares allowed banks to set the prices of dotcom stock issues deliberately low, then hand them to favoured investment clients. Many of the shares were sold quickly, or "flipped", as share prices soared on the first day of trading. However, investment bankers warned that a pure online auction would risk setting an unrealistically high price for Google's shares, since there would not be enough stock available to meet the massive demand from private investors captivated by the prospect of a new dotcom gold-rush. "They could get a $100bn" stock market value, said one person involved. "However, all the shares would end up with Aunt Agatha in Des Moines and Uncle Milt in Pittsburgh and there would be no real public market at all." Frank Quattrone, the star investment banker who controlled many of the dotcom stock allocations, is awaiting the verdict in a trial that sprang out of the scandals. He was accused of destroying evidence to hamper an investigation into the affair. http://www.nytimes.com/financialtimes/busi...c25454cf8dcb697 __________________ Quickbuck is paying $100 Per trial join.

10-24-2003	#2
Carrie Eternal Newbie Respin bullshit press Your Comments Are Welcomed Join Date: Oct 2002 Location: Inside your monitor Posts: 2,850	This is hilarious. Just when a huge weakness in Google's entire engine has been blatantly exposed (blogs and their google bombs), they decide to go public. Sounds to me like they're trying to work up money before they become the next has-been of the search engine graveyard. Nothing like hitting the road with a nice wad a cash in your pocket. __________________ Need a kick-ass design done quickly? I recommend Sex Creator - they absolutely ROCK.

10-24-2003	#3
Hooper Members Join Date: Oct 2002 Posts: 1,156	carrie, most investors dont know what a blog or googlebomb is. and i gotta admit.. i know what a blog is, but not how or why it's important to google.. and i also have no idea what a googlebomb is. all i know is they are everywhere like a virus and i want some of that ipo! __________________ Quickbuck is paying $100 Per trial join.

10-24-2003	#4
Trev Cunty Want to see your own Advertising Here! Join Date: Jan 2003 Posts: 10,150	I know what an ICQ bomb is but I've yet to see a googlebomb... __________________ Sucks to be you.

10-24-2003	#5
Rolo Members Join Date: Dec 2002 Location: Six Feet Under Posts: 2,150	$15bn-$25bn and even up to $100bn for a young company with $150m profits on revenues of $500m - all made in a fast changing industry I thought people had learned from the former dotcoms? Oh well, I guess we will have some new faces on Forbes list in 2005 __________________ "Chaos is the law of nature, order is the dream of man." ~Henry B. Adams (Historian) 1838-1918

10-24-2003	#6
Pornwolf Members Join Date: Jan 2003 Posts: 165	There will be quite a few millionaires and Billionaires made that day. Good for them. It's time to cash out anyway cause the future is not looking too bright.

10-24-2003	#7
Richard N. Bush Members Join Date: Aug 2003 Posts: 94	A googlebomb sounds like something you'd see in a Bruckheimer movie. __________________ Gonzo's Official Photographer