In this paper we will discuss about
Google IPO. As we all know Google's is the name which is admired by almost every individual from all parts of the world. Google is now one of the most valuable brands in the world.
Google IPO issued in 2004.
Google, the largest search engine provider across the globe, launched its initial public offer (IPO) in 2004. The company finally filed its IPO with the Securities and Exchange Commission in August.
Google is a multinational software giant who basically has been monopolizing in the area of search engine for several years. Its revenue was 10 billion dollars for the financial year 2007. Currently it belongs to the list of world's top 10 valuable brand published by Millward brown's brandZ with a brand value of 66.434 billion. This is also a major fact behind the success of Google IPO.
The company released 19,605,052 shares worth 1.67 billion dollars for the public. Its initial market capital was 23.1 billion dollars and the share price was 85 dollars.
Google wanted to collect more than 2.7 billion dollars from the public. However, big investment banks like, Credit Suisse First Boston, Morgan Stanley were some of the leading underwriters appointed by the company.
Risks:
Despite Google's huge success, there are some negative factors associated with its business strategy . These are:
- Google's public relation management is not very efficient, which may decrease its brand value.
- Google's revenue from ad may have a chance to decrease because it has to stop the rogue pharmacy ads and gambling ads in some countries, for example, India for some legal reasons.
- Every day some new IT companies are coming up with their search engines, which may put Google into fearsome competition one day. Therefore, the share price will depend upon the extent to which Google will be able to maintain its monopoly.