Google Inc. (Google) is a California based internet search  engine company that was formed in 1998 by Stanford University PhD students Larry Page and Sergey Brin. On April  19, 2004 Google filed Form S-1 Registration Statement (S-1) with the U.S. Securities and Exchange  Commission indicating its intent to go public by an Initial Public Offering (IPO) of its shares. In a July 27, 2004 regulatory filing with the SEC, Google announced that it  planned to sell the shares using the Dutch auction method. Prior to the IPO, valuations from  industry experts and Google itself suggested that the IPO would place a value on Google in a  range of $8.3 billion - $57 billion. The purpose of this paper is to address the Dutch auction versus  Book-building IPO methodologies, the results of the Google IPO, and the effect of the Dutch IPO process on  the Google IPO. (Excerpt from paper by Tom Corr published in the  book)************** This Case Study discusses the branding impact of the Google IPO. In a  longer, Article-length version of this paper which appears in the Michigan Law Review, I argue that  branding is an unappreciated element of contract design. Corporate finance scholars generally assume  that consumers focus on product attributes like price, quality, durability, and resale value. But  consumers choose brands, not just attributes. The legal infrastructure of deals sometimes affects the  brand image of the company. This Case Study explores the link between deal structure and brand image in  one specific but noteworthy deal, the Google IPO. It is an extreme example of the branding impact of  deal structure, but one that helpfully demonstrates the branding implications that exist, to a  lesser degree, in other deals. The primary goal of structuring an IPO is to lower the cost of capital by  managing the information asymmetry between the issuer and investors. From this perspective, the  success of the Google deal is questionable. Few would call the deal elegant or efficient. But the auction  structure allowed Google to do more than raise money. Google also reinforced its image as an  innovative, egalitarian, playful, trustworthy company. (excerpt from Victor Fleischer's paper)

Google's Very Public IPO

Mingsheng Li

Thomas Corr

Victor Fleischer

ANITA ANAND

The Financier

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Books by The Financier

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Google's Very Public IPO