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Google Cancels Spring IPO
securitas writes "Google fans and potential investors will be disappointed to learn that they must wait a while longer before they can own a piece of Google. The Times of London's James Doran reports that Google's IPO plans are on hold. CEO Eric Schmidt appears to think that market conditions are not right. When pressed for details about the delayed IPO, Schmidt said, "An IPO is not on my agenda right now." A commentary about the delayed Google IPO follows. Mirror at Australian IT."
I mean, before the .com boom, companies usually only went public because they needed money to grow. Google seems to sustain a very healthy bottom-line and I think they have yet to figure out what they want to grow into.
Frankly I'm all for them never releasing an IPO. Sure it brings in extra cash in the short term but in the long term, your buisness focus shifts from your product and customers to the whims of your shareholders. One of the primary reasons people use google that I've seen isn't the qualit of searches, it's the lack of abusive adds, and genereal "customer friendly" enviroment that google provides. So the longer they put off selling stock the longer they don't have shareholders breathing down their necks for better profit margins.
This is not a sig
I find this good news. The longer that Google's technology interests are held in private hands, rather than the public interest of their stock price, I think the world is a better place. I'll be crying when I see GUGL -1 3/4 running across the bottom of my TV screen.
Th
- Microsoft has been making constant noises about their new, upcoming search engine and how great it's going to be, basically doing the full-tilt vaporware thing, almost certainly with the purpose of adding uncertainty to Google's IPO. Microsoft would do something like release, with a huge media blitz, their new search product the day before Google's IPO. Waiting either pushes MS to actually release their product or allows Google, on the not wholly unrealistic possibility that MS drops the subject and then suddenly starts making noises again when Google reschedules their IPO, to accuse MS-Search of being vaporware.
- SCO is being the computer industry loose cannon, until the money from their donation from Microsoft (and, hypothetically, Sun) runs out; they are under no obligation to do anything at all to make more money; and they seem to be desperately, greedily obsessed with doing exactly two things: Hurting linux in any way, public relations or otherwise, and getting press attention. They've been making noises about suing Google; this is probably because making such noises keeps them in the press and because they know Google's about to IPO so they want to push Google to pay SCO some money so they'll go away and stop making uncertainty. However, it's not inconcievable they may well actually sue Google; their case with IBM may be about to unravel, and if so they need to start up a new lawsuit of some sort to keep up the illusion they have some sort of revenue model; and doing so on a nearly-IPOing Google would greatly help MS, which, how shall I put this, SCO at least seems to feel grateful toward, what with the fact their only documented profit ever happened solely because if MS's donation. SCO's a minor consideration, but still delaying IPO at least gives them time to die or deflates their lawsuit threats.
- The economy is changing, and since the president may well change or nearly change in about six months it may be set to change a lot more in a very unpredictable and drastic way. This is a big deal. IPOs are of much less good if the economy changes drastically shortly afterward. (Can you say "Andover"?)
I'm sure you can think of more reasons if you think about it..
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Irritable, left-wing and possibly humorous bumper stickers and t-shirts
People are asking why Google wants/needs to go public.
Here's the deal...private Google stock is held by too many people. They are at the threshold of legally be required to make their books public, and for all intentensive purposes acting like a publically held company.
As long as they will be required to act like a public company, there is a large financial incentive for them to take the next step and trade publically.
Whether they need the money or not...it is knocking on their door (both corp. and personally) asking to be taken. This knocking is (or maybe was) too hard for them to resist.
-Pete
Soccer Goal Plans
Before I knew about Google I was using Altavista. In the beginning they had a simple search interface, similar to how google is setup now. Basically it got the job done. After a while they started to get more widely known and started adding ad's to the front page and basically changing their mode of operation. People switched to google.
I see the same possibility occurring. If google goes down the same trampled path that Altavista went, then a lot of people will be moving on to find another search engine with a clean interface that simply does the job.
Google: Thats what we want. When we go to a search engine we want to search. We don't want links to buy garden tools when we are searching for benchmarks, or links to tech consultants when we are searching for a definition for an error message. Just a search. It's not broken the way it is.
Whee signature.
It's not quite as simple as that. First off, the IPO would only be for a portion of the shares now held in private. So Google insiders would still hold significant control. Second, there are disclosure rules pertaining to buying up shares. The SEC requires shareholders to file statements once they cross thresholds in ownership. Third, Google could implore a number of various defences against any "take-over", including a share rights agreement (aka poisin pill), staggered terms for directors, etc. For one company to buy out another, it either has to be a friendly deal between the parties, or hostile - offers shareholders $$$ to tender their shares to the acquiring entity.
The reason for IPO-ing is either 1) to raise capital for growth, expansion, etc. - Google seems to be doing fairly well so far, and money is still cheap enough that they could tap the debt markets or private placements before going public, or 2) (which is likely more the reason), to provide liquidity for the current shareholders - the currently management team is sitting on millions of dollars, but they don't have any easy means to convert their ownership position into cash.
By having a public float, Google would have to disclose their financial information (as well as other stuff). With all that is happening, increased competition, maybe they take a wait and see approach, especially if they aren't in dire needs for cash.
Yahoo may however be leaving google..
8 77971434.html
http://www.theage.com.au/articles/2004/01/15/1073
Meanwhile, there are reports that Yahoo! and Microsoft are preparing next-generation search technologies to beat Google, the world's most popular search engine. Microsoft, according to one report, is working on a "Google killer" and analysing the Web with its own internet spider, a piece of software critical to building search engines.
Perhaps this will help:
A private company must report its finances once it has more than 500 common shareholders--or stock-option holders--and $10 million in assets, according to section XII(g) of the Securities and Exchange Act of 1934. That means a private company must file quarterly forms with the Securities and Exchange Commission (SEC) that disclose operating expenses, profits, partnerships, shareholders and many other details--a laborious process that can cost as much as $2 million annually.