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Google Considering IPO Auction Online

Posted by ryuzaki0 on from the raising-the-funds dept.

HackerStickers writes "An article in the Financial Times states that Google could be considering doing their IPO online via an auction versus the standard methods of raising funds early next year. The article points out that auctioning it could bring in a larger chunk of cash for the company. Would you bid on a piece of Google?"

4 of 271 comments (clear)

  1. IPO=Death by Marxist+Commentary · · Score: 5, Insightful

    By becoming public, google loses the ability to continue with constant steady growth and innovative R&D. These things will invariably lead to short sighted planning by the management to "make the numbers" for the next quarter, 6 months, or year. "Growth" will be expected year after year - the innovative ideas that have made google so successful will give way.

    No, I won't bid on a share. I would hope that the IPO never happens, as google is still a quality company. I would hate to see that all change.

    --

    Stop corporate

    1. Re:IPO=Death by Threni · · Score: 5, Insightful

      "would attract people that are in tune with google's ideals and previous strategies"

      No, it will attract people who believe they can make money from buy/selling stock.

  2. I'd buy, but not in an auction by merryprankster · · Score: 5, Insightful


    Every day punters are likely to want a piece of Google in a big way. The global reach of the brand and the sentimentality with which the everday web user regards it mean that folks are likely to think that it is worth investing in. But this is where where the auction model completely falls down.

    The article states that the price could get pushed up as high as $100 billion in an auction - for a company that makes $150 million a year??! This is complete .con madness.

    Google directors get to save a small percentage of the billions they are going to make by skipping on underwriting charges, but the potential for the price being pushed to an artificial high in a auction before a catastrophic crash are large.

  3. IPO only good for short term by optisonic · · Score: 5, Insightful

    Google is one of the few companies that regularly and consistently produces USEFUL functions for the world on a large scale. No one competing for the same market segment even comes close at this time.

    Unfortunately when companies IPO, that means that they lose control over company direction and quality. As soon as people have a vested interest in the company, the race to profitability is on. This hurts the development cycle and the processes which control the quality of product. Investors are very demanding and GREEDY. Greed always rears its ugly head and forces companies to release more quickly and with lower costs to attain the extreme profitability that is required by the public.

    Sure if you buy in then you can get a cash cow and end up sitting pretty for a while. Just know that over time people always want more money faster than it is currently being earned. This results in unrealistic schemes to achieve such goals.

    Some would argue that more money means better product, but I know first hand that more money means more greed and investors would rather have money than good product. This means more regular changes internally to keep up with good profitability ratings.

    Fortunately others are starting to compete for this space as well and even if Google looses it's cool due to investor demands, others will be ready to seize opportunity for improvement. Too bad it likely won't be the same Google that we (everyone I know) love today.

    -BJ