taxpod - 4:08 pm on Aug 19, 2004 (gmt 0)

I get so confused by the comments such as "well done Google" or "they must be all smiles at the Googleplex" because the first indication is that the price will jump significantly. First off this is the most highly anticipated IPO in many years. Prices are going to bounce all over the place. Let's say that the price stabilizes at around $150. That, to me makes the IPO an excellent example of how not to do it.

Let's say a fair price for a Google share is $150. Had they gone through the traditional methods, they would have pulled in $150 less the traditional 15% discount or $127.50. That means Brin's bravado cost his company several billion dollars in working capital. Hey, great going guys. You must be all smiles.

The only winners today are the VCs and investment bankers who bought in and sold out.