Google Is Said to Be Seeking Bankers for IPO Next Year

Google, the 5-year-old company that redefined the way people search the Internet, is actively seeking bankers to help it sell shares of the company to the public, according to people familiar with the situation.

An initial public offering of Google shares has long been rumored and investment banks have tripped over themselves for years trying to persuade the company to do so. The formal search begun by Google signals it may be ready to go public in what probably would be the biggest technology IPO in years.

Google recently brought in about 35 firms to pitch for the business and invited about a dozen back for more conversations. The company then narrowed the list even further, said one person who requested anonymity. The IPO probably would occur in the first half of next year, several people said.

A Google spokesman declined to comment.

The Financial Times reported Thursday that Google was considering selling shares directly to the public in an online auction, bypassing the major Wall Street investment banks. Speculation has centered on San Francisco-based W.R. Hambrecht & Co. as the likely investment banker if Google pursues an online IPO. That would be a huge boost for Hambrecht, which has had trouble competing with traditional Wall Street firms for top clients.

Another person familiar with Google’s plans said the firm was aiming for a valuation of about $16 billion, a percentage of which would be sold to the public.

By comparison in the Internet world, Yahoo Inc. has a market capitalization of about $26 billion and Amazon.com Inc. about $22 billion.

A Google IPO could open the door for more deals and revive Silicon Valley.

Google, based in Mountain View, Calif., derives most of its revenue -- estimated by analysts to be as high as $1 billion -- from search-related ad services.