Google's Unconventional IPO Risks Ire of Wall Street

Wall Street had been expecting Google's initial public offering announcement for months before it finally filed in April. And, as expected, Google chose to use an unusual "Dutch auction" feature for its $2.7 billion IPO, which limits the role and fees of investment banks in favor of direct bidding by investors. For a household name like Google with hefty revenues the Dutch auction route could pay off handsomely, particularly if retail investors get jazzed. The SEC filing gave investors their first peek at Google's financials. Last year, it earned $106 million on revenues of $962 million; in 2002, it earned $100 million on revenues of $348 million. Even given the limited fees a Dutch auction offers bankers, there was a frenzy for a piece of the business. Since then, however, some Wall Street players have started to feel that a relative upstart is bullying them. Google's trying to cram this down Wall Street's throat, says Tom Taulli, author and co-founder of Current Offerings, a research firm that tracks IPOs.