Finally!

Finally, after all the speculation and anticipation, Google is indeed going public. By now, you've probably read some criticisms of its unconventional methods - Dutch auction, two classes of stock, etc.

One thing I dig about this whole deal is the letter co-founders Sergey Brin and Larry Page wrote to potential investors in the S-1. It stresses the need for long-term investment and risk-taking: "We will not shy away from high-risk, high-reward projects because of short term earnings pressure." That's incredible refreshing in this era of 'make quarterly numbers at any cost' and it sets the appropriate expectation for investors. Google will be less susceptible to short-term earnings pressure from major institutional investors due to the Dutch auction method and the two classes of stock, which will allow management to maintain control pretty much no matter what. This isn't the IPO that will allow 'get in, get out' investors to double the size of little Billy's college fund overnight. It's the IPO that will allow Google to keep doing what it's doing - innovating.

Posted by tomhespos, April 30, 2004 10:52 AM | | TrackBack