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Google Announces IPO

     
6:14 pm on Apr 29, 2004 (gmt 0)

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Google just announced that they are officially going public. Should occure within 2-3 months.
6:15 pm on Apr 29, 2004 (gmt 0)

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Dang. I had Friday in the office pool. :)

[Added: Here's a Reuters quickie [reuters.com].]

[edited by: pleeker at 6:18 pm (utc) on April 29, 2004]

6:16 pm on Apr 29, 2004 (gmt 0)

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Hmmmmm, I should start saving up and learning up then on investments again.

This definitely gets my interest.

6:21 pm on Apr 29, 2004 (gmt 0)

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woah!
6:26 pm on Apr 29, 2004 (gmt 0)

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"An auction is an unusual process for an IPO in the United States," the company said in the filing. "Our experience with auction-based advertising systems has been surprisingly helpful in the auction design process for the IPO. As in the stock market, if people try to buy more stock than is available, the price will go up. And of course, the price will go down if there aren't enough buyers.

Google also revealed it earned $105.6 million on revenue of $961.8 million in the 2003 fiscal year. In the first quarter of 2004, it earned $25.8 million on revenue of $178.9 million.


[thestreet.com...]
6:32 pm on Apr 29, 2004 (gmt 0)

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Man that is going to be one expensive stock. I think those people will lose a lot of money in the long run. There is too much hype. It will not go for actual value and Google stock will have a correction and a lot of people will lose money.

I bet some really smart guys will make a killing.

6:41 pm on Apr 29, 2004 (gmt 0)

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I am confused ...Only "thestreet.com" report says its going for public auction type IPO - others just say Google filed for the IPO

What is the truth?

6:46 pm on Apr 29, 2004 (gmt 0)

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You can see the actual filing in the supporters forum.
6:48 pm on Apr 29, 2004 (gmt 0)

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$2.7 billion should give Google a $25 to $27 billion dollar market cap. If they filed today the stock should start trading in the next two weeks!
7:01 pm on Apr 29, 2004 (gmt 0)

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It will be months, not weeks.
6:33 pm on Apr 29, 2004 (gmt 0)

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I think is cruel and unusual publishment to show titles like this to all of us who can't spend justify $150 on getting in a forum :) :)

Damn teasers...

Of course in 6 months when my sites is making high three digits monthly instead of mid-two digits then I will be changing my tune. :)

6:41 pm on Apr 29, 2004 (gmt 0)

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Google got off to a fast start this year, with a first-quarter profit of $64 million, or 24 cents per share - more than doubling its earnings of $25.8 million, or 10 cents per share, at the same time last year.

Can anyone say they didn't see this announcement coming?

6:53 pm on Apr 29, 2004 (gmt 0)

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The above-quoted figures suggest there are between 258 and 270 million shares. If all were to be sold, in order to raise 2.7 billion, we would be looking at $10/share or slightly more.

Those who have played in IPO would know more than I on this ... but I'm assuming not all shares will be sold, meaning they expect a higher price. Double that price? How's $20/share sound?

That does make for a pretty lousy P/E ratio ...

7:09 pm on Apr 29, 2004 (gmt 0)

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Yeesh, just post the link already:

[sec.gov...]

7:59 pm on Apr 29, 2004 (gmt 0)

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In one of its first rebellious steps, Google will refuse to project its earnings from quarter to quarter, according to an open letter that Page and Brin attached to the IPO filing.

[news.yahoo.com...]

8:14 pm on Apr 29, 2004 (gmt 0)

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From the S-1 SEC filing [sec.gov]

"It is important to us to have a fair process for our IPO that is inclusive of both small and large investors. It is also crucial that we achieve a good outcome for Google and its current shareholders. This has led us to pursue an auction-based IPO for our entire offering."

8:33 pm on Apr 29, 2004 (gmt 0)

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It's interesting to read the S-1 to see the lengths to which G goes to emphasize the likelihood of initial investors losing money in the name of meeting one of their stated goals -- i.e., having a stock that doesn't fluctuate up or down in the first few days after the public trading begins.

I'm no market expert, but I admire this much: They seem to be going about it their way, setting their terms, and saying that if you don't want to go along, you won't be taking part in the auction.

I was also keen to notice in the fine print toward the end that employees have been offered (and did purchase) millions of stock options at 30 to 35 cents a share. Here comes a new round of millionaires, right GoogleGuy? :)

8:42 pm on Apr 29, 2004 (gmt 0)

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So is it best to open a Morgan Stanley account to have a crack at the auction?
8:48 pm on Apr 29, 2004 (gmt 0)

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Chndru,

Did you check the numbers?

8:54 pm on Apr 29, 2004 (gmt 0)

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or will wr hambrecht be conducting the auction?
8:54 pm on Apr 29, 2004 (gmt 0)

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ahh.. the benefits of instant-media. i just copy-pasted it and they have updated their newscope. here are the correct numbers from the same source.

Google also revealed it earned $105.6 million on revenue of $961.8 million in the 2003 fiscal year. In the first quarter of 2004, it earned $63.9 million on revenue of $389.6 million.

[thestreet.com...]
11:07 pm on Apr 29, 2004 (gmt 0)

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You know... They are expensing "stcok based compensation", and if I read the note right some of it might be in the form of options. If they are doing this now, you have to take that into account when comparing the company with competitors.
1:53 pm on Apr 30, 2004 (gmt 0)

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From Wired:

If you take a close look at the form Google filed with the Securities and Exchange Commission, the exact value of its planned offering is $2,718,281,828 dollars, which some would immediately recognize as the mathematical constant e.

E, for those not blessed with a PhD and a job at Google, is Euler's number, which is used as the base for natural logarithms.

2:40 pm on Apr 30, 2004 (gmt 0)

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There's quite a bit of info at the BBC news site if anybody is interested:

[news.bbc.co.uk...]

2:48 pm on Apr 30, 2004 (gmt 0)

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Google also revealed it earned $105.6 million on revenue of $961.8 million in the 2003 fiscal year. In the first quarter of 2004, it earned $63.9 million on revenue of $389.6 million.

And where do you think the significant growth in the first quarter of 2004 came from?

5:59 pm on Apr 30, 2004 (gmt 0)

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And where do you think the significant growth in the first quarter of 2004 came from?

Adsense - and I wonder how many more publisher's site are there to increase this revenue