[FoRK] NYTimes.com Article: Google's Sale of Its Shares Will Defy Wall St.

Luis Villa louie at ximian.com
Fri Apr 30 22:34:04 PDT 2004


On Fri, 2004-04-30 at 20:19 -0500, Adam L Beberg wrote:
> On Apr 30, 2004, at 1:41 PM, khare at alumni.caltech.edu wrote:
> 
> > Virtually everything about Google's decision to go public
> > is a departure from standard practice.
> 
> The important thing to understand here is not that there is any thing 
> new here. Auctions, class-A shares, and friends are all very old news.
> 
> The thing about Google is that this is the first IPO in ages where the 
> founders:
> 
> 1. Still have the slightest control after raising money from VCs.
> 2. Have enough public demand for the shares to be able to tell wall 
> street to F' off and demand that the money raised in the IPO goes to 
> the company and the company insiders, not 50%+ to the bankers and rich 
> clients like usual.
> 
> Given that, it's exactly the process every company would _LIKE_ to IPO.

Agreed with all of that. I'd add, though, that they appear to be saying
(for the first time that I've seen outside of some pundits) that the
financial industry and investors have got to make a choice between nice
smooth earnings, regular growth, etc., and good, honest corporate
governance. Everything I've seen from the SEC on down seems to say that
you can have your cake and eat it too- massive rewards for steady,
absurdly perfect earnings growth, and honest corporate governance. Or at
least that you can have them, if only you work just a little bit on
having a more activist board and maybe give out only single digit
millions in options instead of triple digits. I don't believe you can
have both- all the rewards are set up to encourage lying through your
teeth. And it seems the google boys agree, and responding. Very
interesting to me.

Luis



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