Google has filed to go public via a $2.7 billion auction-based IPO. The company will go public in the late summer or early fall.

One of the most interesting aspects of Google's SEC filing is that it leads off with a letter from the founders, Larry Page and Sergey Brin.

The letter begins by saying, "Google is not a conventional company. We do not intend to become one."

Consistent with that philosophy, Google has chosen an unconventional means to go public: an auction-based IPO. Here's what Page and Brin had to say about the auction:

Informed investors willing to pay the IPO price should be able to buy as many shares as they want, within reason, in the IPO, as on the stock market. It is important to us to have a fair process for our IPO that is inclusive of both small and large investors. It is also crucial that we achieve a good outcome for Google and its current shareholders. This has led us to pursue an auction-based IPO for our entire offering. Our goal is to have a share price that reflects a fair market valuation of Google and that moves rationally based on changes in our business and the stock market. (The auction process is discussed in more detail elsewhere in this prospectus.)

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An auction is an unusual process for an IPO in the United States. Our experience with auction-based advertising systems has been surprisingly helpful in the auction design process for the IPO. As in the stock market, if people try to buy more stock than is available, the price will go up. And of course, the price will go down if there aren’t enough buyers. This is a simplification, but it captures the basic issues. Our goal is to have an efficient market price -- a rational price set by informed buyers and sellers—for our shares at the IPO and afterward. Our goal is to achieve a relatively stable price in the days following the IPO and that buyers and sellers receive a fair price at the IPO.

We are working to create a sufficient supply of shares to meet investor demand at IPO time and after. We are encouraging current shareholders to consider selling some of their shares as part of the offering. These shares will supplement the shares the company sells to provide more supply for investors and hopefully provide a more stable fair price. Sergey and I, among others, are currently planning to sell a fraction of our shares in the IPO. The more shares current shareholders sell, the more likely it is that they believe the price is not unfairly low. The supply of shares available will likely have an effect on the clearing price of the auction. Since the number of shares being sold is likely to be larger at a high price and smaller at a lower price, investors will likely want to consider the scope of current shareholder participation in the IPO. We may communicate from time to time that we would be sellers rather than buyers.

We would like you to invest for the long term, and to do so only at or below what you determine to be a fair price. We encourage investors not to invest in Google at IPO or for some time after, if they believe the price is not sustainable over the long term.

We intend to take steps to help ensure shareholders are well informed. We encourage you to read this prospectus. We think that short term speculation without paying attention to price is likely to lose you money, especially with our auction structure.

Google Founders, Larry Page & Sergey Brin

We applaud Google for taking this innovative approach that will provide an equitable means for distributing its shares.

-Tim Fredel

P.S. In the interest of full disclosure, two of our offerings, The Rugged Elegance Inspiration Network and RE: San Francisco), are among over 4,500 official news sources selected by Google News.

Jennifer King, co-founder and partner of Rugged Elegance states, "We are thrilled that Google is going public. The Google search engine has tremendous mindshare within the community of "rugged elegant" establishments we serve. However, not everyone knows about the power of Google News or Google News Alerts, which are excellent ways to stay on top of breaking news of interest. With more resources in their pockets, hopefully Google will begin to market this valuable service to an even broader audience."

King added, "As a publisher, there is no better way to get story ideas than from Google News Alerts. For years, as we built BioSpace, PR Newswire was a primary source of content along with 750 media sources we aggregated content from worldwide. However, today -- as we build The Rugged Elegance Inspiration Network, RE: San Francisco and our ChangeMariner.com weblog (aka "blog") focused on economic, political, social and technological change -- we are relying exclusively on press releases from our customers along with Google News Alerts."