Google IPO Clears Audit, Closer to Filing

Google, the web’s top search engine, is making Wall Street go ga-ga with the reported news that an anticipated IPO could be filed as early as this week. Google has completed an audit that clears the way for an anticipated filing of an initial public offering (IPO) by clearing a needed audit. The report on the “to be filed someday soon” IPO from Google is the most recent fuel thrown on the industry speculation fire on probably the most eagerly awaited IPO in many years.

Google has been certified compliant with the requirements of the Sarbanes-Oxley law and it is believed that Google’s board of directors were awaiting the audit report before giving the final go-ahead to file the IPO with the Security and Exchange Commission, according to a report in the the New York Times.

Diverse Google IPO Methods

Industry analysts widely believe that Google’s initial public offering will contain some way to let investors bid for shares via a Dutch auction, akin to the OpenIPO bidding process now used by West Coast investment bank W.R. Hambrecht & Co. In a Dutch auction, the price of the stock is set high and gradually lowered until matching bids are received. Reports from AP Wires and those close to Google say that Google has been looking at combining an online auction with the more traditional distribution of stock through Wall Street underwriters.

According to the AP Wire Service “IPO experts say the mixing of the two methods could give Google a stronger hand in negotiating with Wall Street banks. It also could secure a higher offering price when the shares do reach the market, and that could put more money directly into Google’s pockets.”

Google’s Value?

According to numerous reports last October, Google had contacted investment banks about an initial public offering (IPO) that could value the company in the range of $15 billion and $25 billion.

Many financial analysts believe that a Google IPO be the most valuable public offering since the dot com IPO bubble went belly-up years ago. Google currently is a private company, meaning that it does not have to publically disclose its earnings. However, it is believed to be highly profitable, has 35% of all web searches, and has successfully added a powerhouse advertising network- Google AdWords.

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