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Google Goes Public: The Road to Tech Dominance

Explore Google's journey from a startup to a tech giant, including its IPO, challenges, and innovative strategies. Learn how Google navigated the market and revolutionized search engines.

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Google Goes Public: The Road to Tech Dominance

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  1. Chapters 9 and 10 Daniel Parker

  2. Chapter 9 Google Goes Public

  3. Google Goes 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

  4. 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 • This was in the range of established companies such as Amazon.com

  5. Google Goes Public • 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 • The fact that Google did this and had begun taking money from venture capitalists pretty much guaranteed that Google had to go public

  6. Google Goes Public • On April 29, 2004 Google filed its formal public offering document • 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

  7. Google Goes Public • 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 • 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

  8. Google Goes Public • Google experienced a few problems going public • 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 • Google was also reprimanded by the SEC for offering millions of shares to employees without registering them

  9. Google Goes Public • 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 the next day shares were selling at $108.31 • By November of that same year, shares had reached $200 per

  10. Chapter 10 Google Today, Google Tomorrow

  11. 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 • 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

  12. 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” • 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

  13. 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 • 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

  14. Google Today, Google Tomorrow • 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 • Because of this, their stock dropped from highs of $500 to lows of $10

  15. Google Today, Google Tomorrow • Google and Yahoo differ as far as their search goes • 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

  16. 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 • 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 also has a search shortcut to brings all important information about a topic to one place

  17. Google Today, Google Tomorrow • 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

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