Google Shares Almost Double, Investors Cash In

Shares of Google have nearly doubled since its initial stock offering in August, and the Web search engine's backers and founders are making millions.

The venture capital firm that backed Google in 1999 with less than $15 million distributed 5.4 million Google shares to about 200 investors in one of its funds last Tuesday, the Wall Street Journal reported, citing people familiar with the matter. The investors include 20 institutions and wealthy individuals who are now free to sell their Google shares.

Tuesday, when those shares were valued at $932 million, was the day post-IPO sales restrictions were lifted on 39 million shares held by insiders.

Last Friday, Google's co-founders and chief executive said they would sell a total of 16.6 million shares, valued at $2.8 billion, over the next year and a half. On Thursday, two vice presidents reported selling a total of 55,000 shares valued at $9.5 million.

Google sold shares during its IPO for $85. Last Friday, shares sold at $169.40 in 4 p.m. Nasdaq Stock Market composite trading. At Monday's close the stock price slipped to $165.10, sparked by reports of a big sell-off, the Journal reported.

The venture firm, Kleiner Perkins Caufield & Byers, along with the Google executives are now reaping the gains from Google, which generated such negative publicity leading up to the IPO that the company's big investors scaled back their plans. Kleiner decided against selling shares, and co-founders Larry Page and Sergey Brin, as well as CEO Eric Schmidt, all lowered the numbers of shares they planned to sell.

Now, Brin and Page each plans to sell 7.2 million shares, or roughly 19 percent of their holdings. Schmidt plans to sell about 2.2 million shares, about 15 percent of his holdings.

You may like these other stories...

Read more from Larry Perry here and in the Today's World of Audits archive.In my last article, I summarized major differences between principles in U.S. GAAP and the Financial Reporting Framework for Small and Medium-...
OECD calls for coordinated fight against corporate tax avoidanceDavid Jolly of the New York Times reported that dozens of countries with the most advanced economies have agreed on principles for concrete action to prevent...
AgFeed agrees to pay $18 million to settle SEC accounting fraud caseMichael Rapoport of the Wall Street Journal reported on Monday that AgFeed Industries Inc. has agreed to pay $18 million to settle US Securities and...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30
Many Excel users have a love-hate relationship with workbook links. For the uninitiated, workbook links allow you to connect one Microsoft Excel spreadsheet to other spreadsheets, Word documents, databases, and even web pages.