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Google Slashes IPO price
Hungry Student writes "In breaking news, Reuters and the BBC are reporting that Google has reduced the price of its IPO to between $85 and $95 per share from $108 to $135 per share. Google shareholders are also reducing the number of shares available for sale by 6.1m to 5.5m. The total number of shares available is currently 14.1m."
The initial price per share for Google stocks has been lowered to $85-$95 down from speculative high of $130. This will create a market capital less than $26 billion down from $36 billion. Noted that the confounders, Sergey Brin and Larry Page, disclosed that they intended to sell 1 million shares each but will now sell 480,000 shares in the range of $90 per share valued at about $43 Million. In addition, the pre-ipo market will get 5.5 Million shares, half the originally anticipated. View the Complete prospectus.
Now my kidney I just sold can buy me 50 shares! Yes!
Also, Slashdot's 10 millionth post today! Perhaps in this story even! WOW!
Future successes in any of these businesses could make Google's current price seriously undervalued. And if some key ones fall through, it will have been far too high.
From the article:
"The company may face fines if the SEC finds that the share issue was contrary to stock market regulations."
How much is this tied to the decrease in price? Also, did the interview with Playboy have the negative effect analysts anticipated?
At this hour, nobody really knows how much Google as a whole is worth. That's the whole point of this Dutch Auction system that hasn't quite finished being played out yet.
Once Google's on the market, we'll be able to multiply the share price by shares outstanding to get a "market cap" number that'll be an approximation of Google's total value... but clearly an indicator that'll be bouncing that fast can't tell us too much info perfectly either.
Sure, we'd all want this to be simple, but nothing ever is on Wall Street.
Uhhh, is it possible to buy half of a share? That seems to be all that I can afford.
And for those who are not aware, there exist two classes of voting share, one class that offers 10 votes per share reserved to the founders and CEO, and another which as 1 vote per share, for the rest of us.
g y/2004-05-16-google-nonvoting_x.htm/
See: http://www.usatoday.com/money/industries/technolo
Remember the year 2000? They promised us flying cars. They delivered the PT Cruiser...
For those interested, you might want to try Watching Google Like a Hawk. They provide news and analysis of Googles IPO, their services and future plans. A lot of information for anyone looking forward to the IPO.
This is my sig. There are thousands more, but this one is mine.
I think it's pretty pointless to buy Google stock anyway... It's not like you're getting in on the ground floor of a penny-stock IPO. It it was a small company selling out stocks to get investment capital it would be different. With companys like Yahoo and Cisco no one knew how big they were going to become. So when they did make it big, the stock you bought for a penny ended up being worth hundreds. Google is already big, so the only instant millionares to come of this will be the people who work there.
If they were to want to sell the stock to non-US persons, they would have to go through the registration process (such as it is) in every other country.
If you want to buy shares, set up an account with a US broker, like everyone else does. They will buy it in trust for you. And just so you know, US persons have an extremely difficult time buying shares of foreign companies directly. That's why there are ADRs.
This is a dutch auction. Google is not setting the price. The price they mention is simply an estimate of what they expect the final offering price to be.
No, that's pretty much it. That's where market capitalization comes in - in simple terms it's the total of all the outstanding shares multiplied by the share price. A sort-of "net value" of the company if you wanted to pay cash for all of it.
One $10 share in a company with a market cap of $1,000 is a greater percentage of ownership than one $100 share in a company with a market cap of $1,000,000.
However, that doesn't change the rules of arithematic. The $100 share is still worth - on its own - 10 times the $10 share.
"Lawyers are for sucks."
- Doug McKenzie
But...but...it's so much more fun to get all self-righteous and overreact! Why you got to go ruining the man's parade with FACTS?!
"Gold still represents the ultimate form of payment in the world." - Alan Greenspan, 1999
here:
t company&CIK=0001288776&owner=include
http://www.sec.gov/cgi-bin/browse-edgar?action=ge
The S files are the interesting ones.
no
GTRacer
- Got totally burned on EuroDisney way back when - but I learned the value of a franc
Defending IP by destroying access to it? That makes sense, RIAA/MPAA. Go to the corner until you can play nice!
Actually, this happens a LOT for US IPOs. Sometimes it is even *required by law*.
That's where market capitalization comes in
I thought market capitalization was when Wired used to call the internet "the Internet" and the web "the Web".
Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
Well, now we might be splitting technical hairs. By adjusting a previously flawed calculation of mine, we know the PE is somewhere in the range of 100+, but now Google has a 25% discount (roughly) with the new price goals, which brings it to about 70.
Most people can tell you that at that point, the shares are certainly overvalued. If prices still sell at that level, people are buying. That doesn't mean it's overpriced to the market.
I could buy a can of RC Cola for $50. That might be fine to me (I'm independently wealthy* and very thirsty), but most people won't pay more than $0.50-1.00 for it.
Psst. Here it gets non-technical.
That being said, I have made serious considerations into purchasing Google stock, just so I can start calling it "My Search Engine". As of today, it said it is searching 4,285,199,774 web pages. If Google's shares total about 264 million, that means each share gets to search for a 17 webpages. If I get 5 shares (or whatever the minimum is), I have "search ownership" of 85 pages, and growing! You can bet if I win** some shares I'm going to start staking my claim, and you should too!
Example: This webpage searched by Google thanks to R. Johnathan Prescott.
Then I know that if people search for sweaty men on Google, someone might click-through to their ad. That means I get $0.0000000002! With my 85 pages that I own, I will stake an ad campaign in mainland China. If everyone sees it (1.3 billion people! or 2.59999 bn eyeballs!***), and everyone clicks through, I'll demand payment for that myself, and get...
$0.26 richer!
Then I will go the grocery store, buy a $0.25 piece of candy, and strangle myself with the bag it came in.
Why do I want to buy Google?
________________
* Sadly, no.
** Best to think of it as buying lottery tickets, your outcome will probably be similar.
*** Discount sinister Chinese bond villains with eye patches and others.
Small potatoes make the steak look bigger.
The only way you could be blocked out would be if no broker was willing to act for you.
_O_
.|< The named which can be named is not the true named