Google Goes Public
In a widely-anticipated move, Google has now filed with the SEC to go public, and be a publicly listed company. Morgan Stanley and Credit Suisse Boston were listed as the underwriters. It is probably only a matter of time before Google has an IPO, and there is speculation that the initial public offering could be as much as $2.7 billion in stock. Google has stated that founders (Sergey Brin, Larry Page, and Eric Schmidt) will continue to run the company, but they have expanded their board of directors to include John Hennessy, president of Stanford University; Art Levinson, chief executive of biotech firm Genentech; and Paul Otellini, president and chief operating officer of chipmaker Intel Corp. From a strictly business standpoint, it can be assumed that any public offering would probably result in heavy trading and a very active interest.
From the other side of the business, what does this mean for search engine marketers? Well, certainly no one is coming out and stating that an IPO would change Google -- in fact, every attempt will be made to reassure the world that Google will remain Google, public or not. In practice, however, this may be difficult to achieve.
This first issue will be profits. Those who buy stock in Google will want to see profits from Google stock, and that is perfectly reasonable. Therefore, we can expect to see continuing or even increased push from Google to participate in paid advertising on their site.
The second issue will be control. It's straightforward enough to argue with your co-founder and partner; it might get acrimonious at times and you won't always agree, but overall, the decision-making power to date has been limited to an extremely small circle. Even the modest expansion of the board that just took place means that there are now more fingers in the pie. These new board members are industry experts, and they will definitely have ideas. The original vision of Brin and Page might well end up diverted or diluted.
The third issue is the hard to define "essence" of Google, what makes it Google, the heart of its "Google-ness", so to speak. Google has a feel unlike any other search engine. Overall, right now, most people think of Google as fairly streamlined, not weighed down by too much corporate culture or too much advertising or dead weight. They're also known for a sense of humor notably lacking in many other search engines, not being afraid to indulge themselves in April Fool's jokes at their own expense. Will all that remain the same, or will the stockholders panic in the face of such frivolity?
It seems safe to assume that Google will have to change, at least in some regards, when they go public. That may be for the best, since it's become a huge beast that is probably hard to control with just a couple of people. However, expect a lot of nervousness among Google users at the prospect of their bastion of free internet being corrupted by capitalism! Only time will tell if that nervousness will be justified or not, but let's hope that Google does not follow the trend of so many search engines, and "go corporate", so to speak. They need to make an honest profit, of course, but it would be nice if they could remain the champions of natural search and the unpaid internet. The little guy websites have few champions left.
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