Details of Google's IPO - GoFuckYourself.com

KRL · 10-28-2003, 07:35 AM

This one is going to be a winner and great for the tech stocks.

Bankers Bidding For $2 Billion IPO for Google

NEW YORK · Goldman Sachs Group Inc., Morgan Stanley and eight other investment banks are in the running to underwrite a $2 billion initial public offering by Google Inc., the world's most-used Internet search site, said a banker competing for the business.

Google may sell a stake of about 10 percent, valuing the company at about $20 billion, said the banker, who spoke on condition of anonymity. Other potential underwriters include Credit Suisse First Boston, J.P. Morgan Chase & Co. and Thomas Weisel Partners LLC. Google reduced the list of banks from 15.

Bankers "have been trying to get that business for a long time," said William Tai, a general partner of Charles River Ventures, a firm that invests in technology companies that are just starting out. "People call on them. They never have to pitch anybody."

Google probably is profitable, unlike most of the Internet companies that sold shares during the 1990s boom, according to Eric Martinuzzi, an analyst at Craig-Hallum Capital Group in Minneapolis. The IPO may be the biggest since CIT Group Inc.'s $4.87 billion sale in July 2002 and may rival Genuity Inc.'s June 2000 $1.9 billion sale as the largest U.S. Internet IPO ever.

The company, based in Mountain View, Calif., may have revenue of about $1 billion in 2003 and net income of about $200 million, Martinuzzi said. He said the paid-search Internet market may grow 50 percent to 60 percent next year, boosting the company's revenue in 2004 to about $1.5 billion and net income to about $300 million.

Google generates revenue by providing so-called sponsored-search advertising. The service lets businesses pay to have their Web sites listed at the top of the results of Internet searches on topics related to their business. Google places the sponsored results on its own Web site, and on others that contract with it.

A Google IPO "would be the hottest IPO of any year they choose to come out," said Mark Zadell, an analyst at Blaylock & Partners LP in New York.

IPOs are picking up in the U.S. following the 29 percent gain in the Standard & Poor's 500 Index since March 11. There have been 28 initial stock sales worth $4.2 billion in the second half compared with 12 worth $2.94 billion in the first half.

Google's plan to sell shares next year, reported on Friday by the Financial Times, could encourage other technology companies to sell shares to the public, said Paul Cook, director of technology investing at Munder Capital Management in Birmingham, Michigan.

"A big IPO probably signals that the capital markets have reopened," said Cook. "You'll start to hear and see more from companies that are ready for a public offering."

FATPad · 10-28-2003, 07:39 AM

Oh well. Who's gonna replace Google?

Shareholders won't care that google has the best relevant results and is used because it's simple, uncluttered and effective.

They're just going to know that if they add more ads it'll mean more revenue.

kad · 10-28-2003, 07:49 AM

What are some other companies with a market cap around $20bil?

I cant see how google can be worth even 5% of that.

<IMX> · 10-28-2003, 07:53 AM

FYI Yahoo is 26.89B market cap.
Nice exit for another pair from Stanford...

This will be interesting to watch. AV II?

reynold · 10-28-2003, 07:55 AM

Quote:

Originally posted by FATPad
Oh well. Who's gonna replace Google?

Shareholders won't care that google has the best relevant results and is used because it's simple, uncluttered and effective.

They're just going to know that if they add more ads it'll mean more revenue.

I don't think so. Simply adding ads doesn't improve profitability

10-28-2003, 07:35 AM	#1
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	Details of Google's IPO This one is going to be a winner and great for the tech stocks. Bankers Bidding For $2 Billion IPO for Google NEW YORK · Goldman Sachs Group Inc., Morgan Stanley and eight other investment banks are in the running to underwrite a $2 billion initial public offering by Google Inc., the world's most-used Internet search site, said a banker competing for the business. Google may sell a stake of about 10 percent, valuing the company at about $20 billion, said the banker, who spoke on condition of anonymity. Other potential underwriters include Credit Suisse First Boston, J.P. Morgan Chase & Co. and Thomas Weisel Partners LLC. Google reduced the list of banks from 15. Bankers "have been trying to get that business for a long time," said William Tai, a general partner of Charles River Ventures, a firm that invests in technology companies that are just starting out. "People call on them. They never have to pitch anybody." Google probably is profitable, unlike most of the Internet companies that sold shares during the 1990s boom, according to Eric Martinuzzi, an analyst at Craig-Hallum Capital Group in Minneapolis. The IPO may be the biggest since CIT Group Inc.'s $4.87 billion sale in July 2002 and may rival Genuity Inc.'s June 2000 $1.9 billion sale as the largest U.S. Internet IPO ever. The company, based in Mountain View, Calif., may have revenue of about $1 billion in 2003 and net income of about $200 million, Martinuzzi said. He said the paid-search Internet market may grow 50 percent to 60 percent next year, boosting the company's revenue in 2004 to about $1.5 billion and net income to about $300 million. Google generates revenue by providing so-called sponsored-search advertising. The service lets businesses pay to have their Web sites listed at the top of the results of Internet searches on topics related to their business. Google places the sponsored results on its own Web site, and on others that contract with it. A Google IPO "would be the hottest IPO of any year they choose to come out," said Mark Zadell, an analyst at Blaylock & Partners LP in New York. IPOs are picking up in the U.S. following the 29 percent gain in the Standard & Poor's 500 Index since March 11. There have been 28 initial stock sales worth $4.2 billion in the second half compared with 12 worth $2.94 billion in the first half. Google's plan to sell shares next year, reported on Friday by the Financial Times, could encourage other technology companies to sell shares to the public, said Paul Cook, director of technology investing at Munder Capital Management in Birmingham, Michigan. "A big IPO probably signals that the capital markets have reopened," said Cook. "You'll start to hear and see more from companies that are ready for a public offering." __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

10-28-2003, 07:39 AM	#2
FATPad Confirmed User Join Date: Oct 2001 Posts: 6,693	Oh well. Who's gonna replace Google? Shareholders won't care that google has the best relevant results and is used because it's simple, uncluttered and effective. They're just going to know that if they add more ads it'll mean more revenue. __________________ <a href="http://www.adultcontent.co.uk">Adult Content UK - Great British Content</a>

10-28-2003, 07:49 AM	#3
kad Confirmed User Join Date: Feb 2003 Location: Brisbane, Australia Posts: 735	What are some other companies with a market cap around $20bil? I cant see how google can be worth even 5% of that. __________________ lol internet.

10-28-2003, 07:53 AM	#4
<IMX> Confirmed User Join Date: Jun 2002 Posts: 2,728	FYI Yahoo is 26.89B market cap. Nice exit for another pair from Stanford... This will be interesting to watch. AV II? __________________ $$$ Check out NICHE PAY the leader of Micro Niche Sites! They offer $1 Trials! $$$ $$$ Check out 10 FREE TRIAL SALES equals 1 FREE LAP TOP ! $$$