00 on May 22, $27.72 by June 1st and $27.10 by June 6th (Tobak, 2012)
The company is one of the most modern sources of global communications, which clearly tapped into a highly lucrative and rapidly expanding market, with resulting high profitability, particularly commencing in 2009 and continuing (Forbes.com, LLC, 2013); nevertheless, its IPO was marked with missteps, investor disappointments and numerous lawsuits (Tsukayama, 2012)
26. Its Sales/Revenue and Profitability (Net Income) are as follows, with all numbers in thousands: Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Total Revenue 5,089,000 3,711,000 1,974,000 Cost of Revenue 1,364,000 860,000 493,000 Gross Profit 3,725,000 2,851,000 1,481,000 Operating Expenses Research Development 1,399,000 388,000 144,000 Selling General and Administrative 1,788,000 707,000 305,000 Non-Recurring Others Total Operating Expenses Operating Income or Loss 538,000 1,756,000 1,032,000 Income from Continuing Operations Total Other Income/Expenses Net 7,000 (19,000) (2,000) Earnings Before Interest And Taxes 545,000 1,737,000 1,030,000 Interest Expense 51,000 42,000 22,000 Income Before Tax 494,000 1,695,000 1,008,000 Income Tax Expense 441,000 695,000 402,000 Minority Interest (21,000) (332,000) (234,000) Net Income From Continuing Ops 32,000 668,000 372,000 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income 32,000 668,000 372,000 Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 32,000 668,000 372,000 (Yahoo, Inc
26. Its Sales/Revenue and Profitability (Net Income) are as follows, with all numbers in thousands: Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Total Revenue 5,089,000 3,711,000 1,974,000 Cost of Revenue 1,364,000 860,000 493,000 Gross Profit 3,725,000 2,851,000 1,481,000 Operating Expenses Research Development 1,399,000 388,000 144,000 Selling General and Administrative 1,788,000 707,000 305,000 Non-Recurring Others Total Operating Expenses Operating Income or Loss 538,000 1,756,000 1,032,000 Income from Continuing Operations Total Other Income/Expenses Net 7,000 (19,000) (2,000) Earnings Before Interest And Taxes 545,000 1,737,000 1,030,000 Interest Expense 51,000 42,000 22,000 Income Before Tax 494,000 1,695,000 1,008,000 Income Tax Expense 441,000 695,000 402,000 Minority Interest (21,000) (332,000) (234,000) Net Income From Continuing Ops 32,000 668,000 372,000 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income 32,000 668,000 372,000 Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 32,000 668,000 372,000 (Yahoo, Inc
After all, unlike in the more "traditional" IPO system, in which bankers set the prices low to insure sufficient profits, the auction system not only allowed the company to set a higher price while reaping the reward, but the actual individual stock buyers did as well. However, although many consider Google's management of the IPO offering via auction to have been a stroke of genius, many also consider its initial (July) price to have been foolishly high -- so high, in fact, that some commentators labeled it nothing more than stark "hubris (Gillmore, 2004)
After all, few investors who survived the demise of the tech and start-up boom are as trusting as they once were -- even concerning immensely popular and iconic companies. Perhaps as a response to this reality, Google has managed to break with convention, in a bid to garner optimistic buying among the public -- offering a relatively unheard of Dutch auction both to perhaps, rein in any initial extreme over inflation of the stock (much like that found in VA Linux (La Monica, 2004), as well as to draw certain interest in its very novelty
" Another interesting aspect concerning Google's IPO is the positive position company management/founders seem to gain from the auction method -- specifically in creating two different "types" of stock (PBS). This means that Google's IPO offerings are made up of two classes of stock -- those offered to the managing founders which are worth ten times the voting weight of the ordinary share (Valdmanus, 2004), otherwise known as a "super stock" and those offered to the general public