Gentlemen, Start Your AOL IPO Engines

By Paul Kedrosky · December 25, 2005 · ·

The follow, from a Friday 8-K filing by Google, makes July of 2008 like a good starting point for picking an AOL initial public offering date:

Registration Rights. HoldCo will grant us certain registration rights as follows:

  • Beginning on July 1, 2008, we will have certain rights to require HoldCo to register the HoldCo interests held by us for sale in a public offering. If we exercise this right, Time Warner will have the right to purchase our interests for cash or shares of Time Warner stock based on an appraised fair market value of our equity interest in HoldCo in lieu of conducting an initial public offering.

  • We will have certain piggyback registration rights that we may exercise in respect of an initial public offering or follow-on offering initiated by HoldCo either before or after July 1, 2008, subject to certain underwriter cutback provisions.

Related posts:

  1. NatPost Column: Google’s One-Month Anniversary
  2. Contrarian IPO Thinking
  3. IPO Underpricing as Analyst Payoff
  4. The Critics Come Out
  5. Novadaq Files for IPO

Comments

  1. Anand Gupta says:
    December 25, 2005 at 2:30 pm

    I did not understand your reasoning. Could you please elaborate for non savvy folks like me.
    Thanks,
    Anand

  2. Rob Hyndman says:
    December 25, 2005 at 2:42 pm

    In light of the ‘first day pop’, I wonder if it’s reasonable to a FMV buyout as an alternative to reg rights …

  3. grumpY! says:
    December 25, 2005 at 3:19 pm

    AOL is the trailer park of the internet. These are the absolute dregs, totally non-monetizable as a result. That everyone instantly went ga-ga over this cannot-be-resurrected has-been is beyond me. This is like Eddie Lampert buying Sears – he just wants to resell the land under the stores, no one cares about the brand anymore.