Google row over Playboy interviewPosted 16/08/2004
Google has gone ahead with bidding for its initial public offering, despite fears that the search engine may have violated securities rules.
Founders of the world-famous website, Sergey Brin and Larry Page, gave an interview to Playboy magazine and have been accused of "courting the media".
Companies usually avoid media interviews ahead of a stock market flotation, but Google denies claims that its bosses have been hyping up the stock. The search giant has stated that it plans to "vigorously" contest any claims by regulators.
In a filing with the US Securities and Exchange Commission, Google warned it could be forced to buy back the securities sold in its IPO if it is found in violation of securities laws. The internet company's $3.3 billion stock flotation will see the firm sell 25.7 million shares at an estimated price range of $108 to $135 per share.
The article in the September 2004 issue of Playboy entitled "Playboy Interview: Google Guys" says it was derived from an interview with Google founders Larry Page and Sergey Brin. Google has said it does not believe its involvement in the article constitutes a violation of the "quiet period" before a share offering.
Earlier this year, Salesforce.com Inc was forced to delay its IPO after the company and its chief executive Marc Benioff were featured in a New York Times article.
Google will announce the price of the initial public offering (IPO) next week. © DeHavilland Information Services plc
© 1998-2004 DeHavilland Information Services plc.
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