Trouble ahead for Google as IPO nears?
Google cofounders Larry Page and Sergey Brin's decision to bare allverballymay land them in hot water with the SEC. At issue is the dynamic duo's decision to grant an interview to Playboy magazine a week before Google filed its IPO back in March, an act that may be seen as a violation of the SEC's "quiet period." Put simply, the so-called quiet period is in place to restrict information a company with an upcoming initial public offering can release about itself to the public. Reportedly, the two talked extensively about Google's business practices in the interview, but at the time of this writing, the SEC has yet to take any punitive action against Google. The Google interview is featured in the September issue of Playboy.
Earlier in the week, Google agreed to issue rival Yahoo 2.7 million shares of common stock valued between $260 and $290 million to settle patent infringement and other legal disputes between the two companies. Despite some PR issues, Google's IPO auction is on schedule for this morning.