April 30, 2004
The Google IPO

I applaud Google founders Larry Page and Sergei Brin for their principles and their courage in standing up to Wall St. in setting their IPO terms. There will be no feeding of IPO shares to "special friends" who flip them for an instant profit. There will be no games played with analysts in providing guidance about quarterly earnings.

It's too bad it took nothing less than the leverage of these presumptive billionaires to make this happen. This is the only way Wall St. would listen.
I truly hope they are able to continue to manage the company for innovation in the face of inevitably mounting financial and competitive pressures.

What I hope even more is that their bold moves will stimulate a whole series of debates about the ways in which venture capital and Wall St. do and don't work to promote the development of technology, like Google's, which genuinely serves people's needs.

Posted by mitch@osafoundation.org at April 30, 2004 08:03 AM

Your thoughts are very good.I am just a newbie understanding the whole thing.But felt the essence in your comments.


Posted by: Senthil at April 30, 2004 11:01 AM

If only that were true, Mitch.

In their own way, Sergey and Larry are treating retail investors nearly as high-handedly as Wall Street-ers are prone to. The opening letter in the S-1 is preachy and "Google knows best"; the multi-class A/B share structure is a step backward; and the S-1 comments about financial transparency (why be public if you aren't prepared to live with quarterly results?) aren't exactly enlightened.

While Google the company is a wonderful thing, and messing with the minds of investment bankers is never a bad idea, the filing has me hoping that going public turns into at least as much fresh air for Google as for the market.

Posted by: Paul K. at April 30, 2004 11:59 PM