Google Inc., the Internet search engine company that has sparked renewed visions of a technology stock market bonanza for more than a year, is expected to begin trading on the Nasdaq market in the immediate future, possibly as early as today.
But the number of shares to be offered to the public has been substantially reduced, and the expected size of the payoff for the Google founders and early investors will be significantly smaller than earlier expectations.
Google stock will trade at $85 a share - a far cry from the $135 the company originally was hoping to get. The stock-sale bounty is expected to be more than $1.67 billion, but far less than the nearly $3.5 billion that had been hoped for.
Google officials lowered their estimate of the anticipated price and number of shares the company planned to sell in a filing with the Securities and Exchange Commission yesterday morning, and closed its auction in the afternoon after the SEC gave final approval to the stock sale. Before trading could begin, Google had to set the final price, alert bidders and allocate shares.
Some said the price drop indicates Internet stocks are still too risky, several years after the dot-com bubble burst. Others said Google's business potential has been overestimated, and still others said the company is worth more money. The only thing analysts agreed on was that there has been a lot of noise about Google.
Google, which won the hearts of Internet users by quickly delivering the most satisfying results to those searching for information, has evolved from a technology company into an advertising vehicle with popularity that competitors have yet to match.
But other search engines are closing in and investors have had to consider whether Google can preserve its preeminent position, whether advertisers will continue to do business on search engines, and - perhaps most importantly - whether Google can overcome the criticism about its initial public offering to keep its beloved status.
Media have dissected Google daily in the weeks leading to its stock offering, chronicling every strange twist and turn (and there have been many) on its four-month journey to becoming a public company.
Analysts called its initial stock estimate overpriced, reporters called the business a "wunderkind," and fans left declarations of love for Google all over Internet message boards.
It's a business wonder with some reason, some experts say.
