Feeds

Google slashes IPO value

Regulatory hurdles still to be jumped

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

Google has slashed the potential maximum value it will raise from its IPO to just $1.9bn by cutting prices and reducing the amount of the company it expects shareholders to sell.

The company lowered its IPO price range to between $85 and $95 per share, down from $108 to $135 per share. Along with the reduction in share price, the company also said the selling shareholders would offer around half as many shares for sale as had originally been planned.

Selling shareholders include the company founders, venture capitalists and other company executives.

The company has requested that the Security and Exchange Commission approves the sale, and declare its registration statement effective from 4pm EDT today (Wednesday). This follows the SEC's failure to approve the sale by 4pm yesterday, as Google had requested.

Once Google gets regulatory approval, bidding will end and the company will start issuing stock.

Google had been heavily criticised for pricing its shares as highly as it did, and was accused of pricing the 'average' investor out of the bidding process. Industry observers were also unhappy that the company elected to issue two classes of stock, and accusations of cronyism abounded.

Against this background, few people watching the IPO will be surprised that the company has decided to lower its auction price. ®

Related link

Google's explanation of the Dutch auction process is here.

Related stories

Google IPO 'hangs in the balance'
Google must buy back buddy stock
Google prices IPO, names ticker

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?