Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 5 pages
Data source: Published sources
Topics:
Google's initial public offering (IPO); Securities and Exchange Commission (SEC); Dutch auction system; Larry Page, Sergey Brin; Google's algorithms; National Association of Securities Dealers; High-net-worth; Credit Suisse First Boston; Berkshire Hathaway; America OnLine; Yahoo!; Dual ownership structure; Risk management; Investment bankers; Bidder identification
Abstract
Traditionally, companies have been following the initial public offering (IPO) procedure to raise funds from the public. They had been heavily relying on investment bankers to organise the sale and listing of their shares. In the past, on many occasions the role of the investment bankers was under scrutiny. This made the two young owners of Google, Eric Schmidt and Sergey Brin, experiment with the ''Dutch auction system'' of public issue. Google had managed to crack the code for searching on-line, so maybe they could crack the code for getting the individual investor more involved in the IPO market - felt some industry experts. The case study offers discussion on the acceptability and uniqueness of Google''s model of IPO and the ramifications thereof. A structured assignment ''104-079-4'' is available to accompany this case.
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Abstract
Traditionally, companies have been following the initial public offering (IPO) procedure to raise funds from the public. They had been heavily relying on investment bankers to organise the sale and listing of their shares. In the past, on many occasions the role of the investment bankers was under scrutiny. This made the two young owners of Google, Eric Schmidt and Sergey Brin, experiment with the ''Dutch auction system'' of public issue. Google had managed to crack the code for searching on-line, so maybe they could crack the code for getting the individual investor more involved in the IPO market - felt some industry experts. The case study offers discussion on the acceptability and uniqueness of Google''s model of IPO and the ramifications thereof. A structured assignment ''104-079-4'' is available to accompany this case.