Chapters 9 and 10 Daniel Parker

Chapter 9 Google Goes Public

Google’s fast rise to fame sparked rumors that the company would soon go public Google’s fast rise to fame sparked rumors that the company would soon go public Reports in 2003 showed that Google’s revenue was almost $1 billion, and their profits reaching over $300 million Reports in 2003 showed that Google’s revenue was almost $1 billion, and their profits reaching over $300 million

Google Goes Public By the end of 2003, it was believed that Google’s initial public offering (IPO) would be valued at approximately $16 billion By the end of 2003, it was believed that Google’s initial public offering (IPO) would be valued at approximately $16 billion This was in the range of established companies such as Amazon.com This was in the range of established companies such as Amazon.com

Google Goes Public For years Google was adamant about never going public as a company For years Google was adamant about never going public as a company However, a little know SEC rule required companies who gave stock options to more than 1,000 employees to report as a public company However, a little know SEC rule required companies who gave stock options to more than 1,000 employees to report as a public company The fact that Google did this and had begun taking money from venture capitalists pretty much guaranteed that Google had to go public The fact that Google did this and had begun taking money from venture capitalists pretty much guaranteed that Google had to go public

Google Goes Public On April 29, 2004 Google filed its formal public offering document On April 29, 2004 Google filed its formal public offering document Google declared it would sell $2, 718, 281,828 worth of shares Google declared it would sell $2, 718, 281,828 worth of shares This number was equal to the mathematical concept of e, which is similar to pi This number was equal to the mathematical concept of e, which is similar to pi

Google Goes Public Google handled going public different from most companies Google handled going public different from most companies Instead of allowing an investment bank to handle the process, Google used a public auction to set the price of its stock Instead of allowing an investment bank to handle the process, Google used a public auction to set the price of its stock Google also had a “dual class” shareholding structure Google also had a “dual class” shareholding structure This meant that the founders and senior executives would hold a lot more control than common shareholders This meant that the founders and senior executives would hold a lot more control than common shareholders

Google Goes Public Google experienced a few problems going public Google experienced a few problems going public The Sarbanes-Oxley Act: tightened rules on companies when it came to accounting for revenue The Sarbanes-Oxley Act: tightened rules on companies when it came to accounting for revenue Because Google made their money by the penny, they had to restructure its advertising reporting system Because Google made their money by the penny, they had to restructure its advertising reporting system Google was also reprimanded by the SEC for offering millions of shares to employees without registering them Google was also reprimanded by the SEC for offering millions of shares to employees without registering them

Google Goes Public On August 18, 2004, Google officially went public with shares going at $85 On August 18, 2004, Google officially went public with shares going at $85 By then end of the day, the stock rose to $100 a share By then end of the day, the stock rose to $100 a share By the next day shares were selling at $ By the next day shares were selling at $ By November of that same year, shares had reached $200 per By November of that same year, shares had reached $200 per

Chapter 10 Google Today, Google Tomorrow

After officially going public, Google had to do a complete overview of their company in order to prepare for the future After officially going public, Google had to do a complete overview of their company in order to prepare for the future Google hired Shona Brown as vice president of business operations to ensure they were performing as a big time company Google hired Shona Brown as vice president of business operations to ensure they were performing as a big time company Google was essentially becoming a new company Google was essentially becoming a new company

Google Today, Google Tomorrow Google is now organized into core groups by function- core search, advertising products, and products known as “20 percent” and “10 percent” Google is now organized into core groups by function- core search, advertising products, and products known as “20 percent” and “10 percent” These products came from Google’s “imaginary” product development process, where engineers are encouraged to take on additional projects These products came from Google’s “imaginary” product development process, where engineers are encouraged to take on additional projects Examples of this are Gmail and Google News Examples of this are Gmail and Google News

Google Today, Google Tomorrow In 2004, Google dropped its Top 100 list, choosing instead to have different segments of the company its own list of projects In 2004, Google dropped its Top 100 list, choosing instead to have different segments of the company its own list of projects Having achieved a revenue growth of over 400,000 percent in five years, Google was named the fastest growing company ever by the accounting firm Deloitte Touche Having achieved a revenue growth of over 400,000 percent in five years, Google was named the fastest growing company ever by the accounting firm Deloitte Touche

Google Today, Google Tomorrow In 2001, Google’s main competitor, Yahoo, was hurt by the markets and almost went out of business In 2001, Google’s main competitor, Yahoo, was hurt by the markets and almost went out of business Yahoo had to lay off hundreds of workers and merge its cost base Yahoo had to lay off hundreds of workers and merge its cost base Because of this, their stock dropped from highs of $500 to lows of $10 Because of this, their stock dropped from highs of $500 to lows of $10

Google Today, Google Tomorrow Google and Yahoo differ as far as their search goes Google and Yahoo differ as far as their search goes Example of the term “usher” Example of the term “usher” Google gives some Google News stories on the singer, with AdWords on the right, with the majority of the page showing the top 10 results Google gives some Google News stories on the singer, with AdWords on the right, with the majority of the page showing the top 10 results

Google Today, Google Tomorrow Yahoo on the other hand gives organic results along with an “also try” feature; this allows Yahoo to watch what users are searching for Yahoo on the other hand gives organic results along with an “also try” feature; this allows Yahoo to watch what users are searching for There are also two sponsor results at the top of the page There are also two sponsor results at the top of the page Yahoo is more aggressive when it comes to commercializing on their site Yahoo is more aggressive when it comes to commercializing on their site Yahoo also has a search shortcut to brings all important information about a topic to one place Yahoo also has a search shortcut to brings all important information about a topic to one place

Google Today, Google Tomorrow Google tries to solve things by strictly using technology, without the need for humans Google tries to solve things by strictly using technology, without the need for humans Yahoo approaches problems with the idea that humans are needed to find solutions Yahoo approaches problems with the idea that humans are needed to find solutions