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Why Google should never IPO

from WND

     
9:48 am on Mar 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



[worldnetdaily.com...]

WW community thoughts?

10:54 am on Mar 17, 2003 (gmt 0)

10+ Year Member



Couldn't agree more with this point.

On the other hand though, does the fact that generally tech stocks are undervalued mean that if Google *does* float, it's stock will be undervalued whatever the aspiring sentiment and therefore a great buy?

10:59 am on Mar 17, 2003 (gmt 0)

WebmasterWorld Senior Member vitaplease is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Given weak technology stock valuations, an IPO would offer a very unattractive cost of capital. Given the instability of the market, publicly traded Google stock serves as poor compensation for employees

1. Its not necessarily that Google needs money.
2. Google's investors and employees with stock-options would like to have a real market evaluation of their shares worth and a possible way out.
3. "a very unattractive cost of capital", if a Venture Capitalist wants to cash a part of his stake in Google, it is not a cost of capital to Google.
4. I think even in this stock market, Google's IPO PE will be sky-high.
5. I would not be suprised if they only float 10-20% of the shares.

1:40 pm on Mar 17, 2003 (gmt 0)

10+ Year Member



Perhaps - but would the shares being issued at way over the real value not just cause another dot com mini-bubble?
3:42 pm on Mar 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If Google did become a public company, I don't think GoogleGuy would be allowed to make anymore substantive posts here.
3:55 pm on Mar 17, 2003 (gmt 0)

10+ Year Member



UPS only floated 10% and raised 5 billion. Maybe Google can do the same.
3:57 pm on Mar 17, 2003 (gmt 0)

WebmasterWorld Senior Member vitaplease is a WebmasterWorld Top Contributor of All Time 10+ Year Member



.. but would the shares being issued at way over the real value not just cause another dot com mini-bubble?

All depends on the expectations google gives.

related thread: [webmasterworld.com...]

4:32 pm on Mar 17, 2003 (gmt 0)

10+ Year Member



figment88,

If Google goes public Google Guy will be posting his messages from some exotic beach on some exotic island :)

Tor

2:10 pm on Mar 26, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Looks like Google is not [webmasterworld.com] going public after all...
 

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