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Google Tries To Silence IPO Rumours

Posted by ryuzaki0 on from the good-move dept.

egoff writes "Google has put off an IPO for now, saying "Thus far, laziness has always won out. There are so many better things to do." The New York Post suggests that Google's focus on R&D doesn't really mesh with the financial accountability of a publicly traded company. However, many analysts believe a successfully Google IPO could rejuvenate Internet-company investments."

2 of 289 comments (clear)

  1. Google. by sporty · · Score: 5, Interesting

    Google, amazon.com and pets.com, do something VERY well. Google does searching, amazon.com and pets.com sold pet stuff. One out of the two sales sites survived. Google doesn't have much in the way of multiple forms of revenue. They have a search appliance, yahoo-like searech contracts and ad services and possibly other minor services.

    If inktomi comes around and does something better than google, google will turn over and die unless it can one-up inktomi.

    Amazon survives because it sells physical things, and not services (contracts/licenses). It's also the bigger sales company. If you dont' buy a segway, it won't go out of biz. If you don't by electronics, it has other revenues in other areas of merchandise.

    Google NOT IPO'ing has its strengths. No investors to try and please. Being public means you are even more watched than ever, since you now have shareholders. If one scandle comes about, GOGL (google) could tank.

    Sometimes, it's easier to be a humble celebrity than a flashy one.

    --

    -
    ping -f 255.255.255.255 # if only

  2. Other reasons to remain private by Agar · · Score: 5, Interesting

    Besides R&D costs and the market's focus on short term results, Google needs to remain private to retain its very employee-focused culture. See this long list of benefits for employees. Very impressive, but not costs that Wall Street analysts would have much patience for.

    In a strong market, employees will see more potential upside to their stock, and will be willing to trade a great culture for riches. But today, Googlers are happy with a job, ecstatic with the free meals, and are willing to bank on the currency being valuable (maybe even worth more) later.