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May 15, 2004

Google Announces “Online Auction Style” IPO

By Brent Winters

Google recently announced that it expects to raise as much as $2.7 Billion in its initial public offering. The long awaited IPO announcement came with a twist. Google has chosen to shun the traditional Wall Street IPO approach of selling shares, but will instead sell them via a Dutch style online auction. Morgan Stanley and Credit Suisse First Boston will underwrite the process.

In Google’s April 29th SEC filing, 2003 revenues were reported as $961 million with a net profit of $103 million. For the first quarter of 2004, Google reported sales of $389.6 million. This is an increase of 118 percent from the previous year. Net income was $64 million, up 148 percent compared to the first quarter of 2003.

Google’s SEC Filing.

CNN: “ABC’s of a unique IPO”

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