Google IPO Sparks Excitement among Investors, Wall Streeters

First Google became a verb: Have you goggled today? Now it has become the most anticipated initial public offering in years, with the Internet-search company expected to hire Credit Suisse First Boston and Morgan Stanley to lead its IPO.

Wall Street has been waiting with baited breath to see what companies would be hired to guide the IPO, which is expected to generate about $100 million in investment-banking fees, not to mention bragging rights, the Wall Street Journal reported.

Morgan Stanley and Credit Suisse First Boston will act as joint book-running managers for the proposed offering.

With investor interest off the charts, the IPO could make Google worth about $25 billion — worth more than Sears, Roebuck & Co., and Marriott International Inc. Not bad for a company that didn’t exist 10 years ago. The two young computer gurus who founded the company will also become wealthier than they could ever have imagined.

Google’s IPO will test some of the new reforms that were designed to protect smaller investors from the favoritism sometimes shown to Wall Street investment-banking and trading clients, the Journal reported.

The excitement surrounding the IPO is a testament to the role Google plays in how people use the Internet and the revenue has materialized too. Advertisers are taking greater interest in using search sites to target their advertising by matching their ads with the products and services people are searching for.

Google, which is known for being secretive about its inner workings, is being pushed into the IPO by federal rules that call for some closely held companies to publicly disclose more and more information as they become bigger. These rules often result in companies filing IPOs, the Journal reported.

The Securities and Exchange Commission rule covers companies with more than 500 shareholders and $10 million in assets, which covers Google since most of its 1,000-plus employees hold stock options, the Journal reported. The rule calls for companies to file disclosures within 120 days of the end of their fiscal year, which for Google, happens this week.

Update: Google Inc., filed with U.S. regulators today to become a publicly listed company in a widely expected initial public offering. Without specifying a price per share, Google said it hopes to raise $2.7 billion with an initial public offering that’s created the biggest high-tech buzz since the dot-com bubble burst four years ago.

You may like these other stories...

It's not a reality—yet—but accounting software is poised to eliminate accountants. We are at a tipping point for many similar professions: online education replacing professors, legal software replacing...
Inversions: Loophole Is the ProblemJacob J. Lew, the U.S. Treasury Secretary, published an opinion piece in the Wall Street Journal that "the system has become full of inefficiencies and special-interest loopholes. That...
School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.