Google Says It's Worth $36 Billion

[intelliot]

Interesting info:

o $108 to $135 a share.
o Values itself at up to $36 billion
o Symbol "Goog."

Google Inc., which runs the world's most-used web search engine, said Monday it plans to sell 24.6 million shares in its initial public offering for between $108 and $135 a share, according to a regulatory filing.

The filing values the company at as much as $36 billion based on a total of 268.5 million Class A and Class B shares outstanding. Google also said it plans to list its shares on the Nasdaq Stock Market under the symbol "Goog."

Google will raise as much as $3.3 billion in selling a 9 percent stake in the company, according to the U.S. Securities and Exchange Commission filing.

Instead of channeling shares to institutions such as mutual funds through investment banks, Google hired Morgan Stanley, Credit Suisse First Boston and 29 other securities firms to run a sale that will give the public an opportunity to bid for stock by phone, fax or the Internet.

Google generates most of its revenue by selling text ads that appear next to Internet search results on its own web sites and those with whom it has formed partnerships.

Its partners include Time Warner's America Online. Google charges advertisers each time consumers click on their ads.

Google reported a net income of $64 million on net revenue of $389.6 million in the three months to March 31, compared with net income of $25.8 million on net revenue of $178.9 million in the same period in 2003.

Larry Page and Sergey Brin, who began working together as Ph.D. candidates at Stanford University and founded the company in 1998, hold 15.7 percent and 15.6 percent stakes in the company, respectively.

Page and Brin, whose father is from Moscow, said they plan to sell a "fraction" of their holdings.

[cvrk3]

as i had indicated in one of my earlier post the pricing would have been right at 80USD. anyway it is their decision. invest and it is a good opportunity.

[Anonymous]

I think that investing in google is like investing in all of those other internet bussineses that drop. I am not saying that google will go out of bussiness any time soon, I am just saying that some day the public will realize "hey how can a bussiness like google be worth all this money" then the prices will drop.

[cvrk3]

i disagree as in my opinion internet is information, and google enables you to get the same. i think google has a great future so also the search technology.

[jeramy]

i dont think that google is worth that much but i do believe it will not drop out of the public anytime soon. it is the mainstream search engine used by most people out there and with the upcoming gmail release their price will continue to grow. if i could afford their prices for stock (and maybe be of age to own stock) i might buy some. they will be sticking around for quite some time in my opinion.

[Anonymous]

Originally Posted by jeramy

i dont think that google is worth that much but i do believe it will not drop out of the public anytime soon. it is the mainstream search engine used by most people out there and with the upcoming gmail release their price will continue to grow. if i could afford their prices for stock (and maybe be of age to own stock) i might buy some. they will be sticking around for quite some time in my opinion.

yeah, I see what you mean. I just don't find internet companies a stable market, many have dropped before. Maybe I am just paranoid but I would not invest in google.

[jeramy]

yeah i know what you are saying but a lot of brick-and-mortar stores are just as big a gamble. never know when they are gonna go out of business either.

either you, or some guys will invest in google. some people will invest all they have in it. I see potencial as long as they release their stock, and then release Gmail. Wow. either way their stock will go up.

[kidgoku]

that's lot of money tho

[DaMoUsYs]

i knew that google was good, but that good that they are worth 36 billion