Financial Accounting Blog

Monday, April 26, 2004

CNN Money reports that Google is considering an Initial Public Offering (IPO).
While an IPO may bring certain benefits -- like raising capital -- it also brings more scrutiny and the added expense and legal requirements of filing with regulators.

But for Google, which has been very tight-lipped about its current or future business plans, its own growth may have forced its hand.

Securities regulations mandate that once a company reaches a certain size, it must publicly disclose its financial information. So in the case of Google, it's more of a "why not?" decision, said Peter Astiz, a securities attorney and partner with law firm Gray Carey.
Google faces a delimna, as the owners want to keep their tight grip on the operations, but may have to succumb to government regulations and employees with stock options interest to cash in on the public's interest.