Feeds

Merrill Lynch drops out of Google IPO

Updated prospectus

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Search engine Google has dropped Merrill Lynch from the group of bankers overseeing its Initial Public Offering.

In an updated prospectus, Google named Morgan Stanley and Credit Suisse First Boston as lead bankers for the flotation. There are conflicting reports as to who exactly left who. According to AP Merrill Lynch pulled out of the deal because it thought fees were too low. Google is offering shares via an auction rather than a traditional IPO, leaving smaller fees for bankers.

The search company also warned that government action against its email service could hit future profits. The prospectus also strengthens warnings that share prices may fall.

The prospectus warns that analysts are more interested in short-term profits rather than long-term, less-predictable ,profits - so they may push the price down. Because the sale will be by auction there may be a big gap between actual prices and those offered by analysts.

The prospectus also makes clear that Google staff and management will sell stock during the IPO. Traditionally staff are locked in and cannot sell shares for a period of weeks or months after trading starts.

There was another hint that all may not be well within the company. Anyone typing "out of touch management" into Google's search site was sent straight to the biog page for senior Google executives. The Google bomb was spotted by the New York Times. ®

Related stories

Google's Gmail: spook heaven?
BT man coughs to Google share scam
Google's public-auction IPO: smart move?

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.