Detailed report about Google Initial public offer . which made google a global company today with its enhanced and updated technology in the world .

1. Google IPO
Presented by :
G.Vamshi Netha
C.Abhinay
M. Rajesh
T. Shivani
M. Sahithya
P.Vyshavi

2. Introduction
• Google IPO - August 19,2014
• 25th largest IPO in corporate history and the biggest technology
IPO till date.
• Controversies
• Criticism
• Just before a day it went public, revised and scaled down its estimated per
share price range from $108-$135 to $85-$95 per share.
• Reduced number of shares to be sold from 25.7 million to 19.6 million.
• Google used “Dutch Auction” method .

3. Background Note
• Founders of Google –Larry Page and Sergey Brin
• They want to develop a technology that retrieves appropriate data .
• Named their search engine as “Back Rub”.

4. Background Note
• They used their rooms as data center and business offices.
• Rejections from many companies to invest

5. Background Note
• Bechtolsheim saw their presentation and was impressed.
• Managed to collect another $1 million and opened their office on september
7,1998.
• Google was still in beta stage (trial run phase) it was answering 10,000 queri
es each day.
• Their technology attracted the attention of press and PC magazine named go
ogle as one of the top 100 websites in 1998.

6. Background Note
• In short span it had attracted many corporate customers and Red hat signed
on its first commercial customer.
• Secured venture capital of $25million from Sequoia capital and Kleiner Perkins
caufield and byers.
• Reputed persons from various organizations joined Google as New members of the
board .
• In the same year they shifted office to Mountain view, California.

7. Background Note
• In 2000 Google introduced a wireless technology.
• Launched 10 non English versions of search engine.
• Emerged as largest search engine in the world with its index reaching 1billion URL’s.
• Yahoo also selected Google as its search engine.
• Added new features like Google number search and Google toolbar.
• In 2001 - Acquisitions
• In 2002 - Advertisement.
• In 2003 - Country’s specific domains increased to 82.
• In 2004 – Announced IPO.

8. Dutch Auction
• Most awaited IPO’s
• Not performing well
• More profitable for Google
• Investor bankers were not happy
• First day pop
• Conventional method
• Google- customer needs
• Advisor- William.R.Hambrecht & Co
• Credit Suisse First Boston & Morgan Stanley
• Auction process

9. The Controversy
• Violation of SEC rules.

10. • Google had issued 23.2 million shares and 5.6 million outstanding stock
options to employees(ESOP’s) and consultants.
• Speculation ran high that Google had purposely not disclosed the shares
because of indulging in illegal dealings?
The Controversy

11. The Controversy
• Although most of investment bankers and large institutions had expressed
apprehension over the IPO.
• Google lowered the share price just one day before the IPO was to be
released and set new price range of $85 to $95 .

12. The Controversy
• Along with share price reduction they also reduced the number of shares
offered from 25.7 million to 19.6 million.

13. CRITICISM
=

14. CRITICISM
2002
Unlike
GOOGL

15. CRITICISM
Page and Brin

16. CRITICISM
L. Smetek, CIO

17. ALL’S WELL THAT ENDS WELL

18. ALL’S WELL THAT ENDS WELL

19. ALL’S WELL THAT ENDS WELL
• Although Google's IPO would make its early employees fabulously wealth,
the day was celebrated simply with ice cream, and employees were warned
not to make a show of their newfound riches, or let it get to their heads. On
the day of the IPO, Google's head of
engineering, Wayne Rosing, even told all employees that if he saw
any new .
• BMWs or Porsches in the parking lot in the next few days, he would smash
their windshields with a baseball bat.