Groupon confirmed in a regulatory filing today that it is seeking an IPO of around $11.4bn, significantly lower than the $25bn IPO the e-coupon site was pursuing in June this year. The company is offering 30 million shares of Class A common stock at $16 to $18 each, which means Groupon could raise as much as $540m, or $260m less …
There is nothing unique about what groupon delivers. Anyone buying this stock will only prove the old adage 'a fool and his money are easily parted'.
Besides which, if they waited around long enough, I'm sure they'll get an email offering them the same product with 60% off...
Understanding money men
They don't care about the long term viablilty. They care about others who are even stupider and who will buy at an even higher premium just after IPO. Yes, they may have a great 1st class degree from a top university, followed by an MBA. However, share trading relies on judging on the mentality of the stock market purchaser - not on the long term viability of a company.
Hong kong rules and banking
I think that in the time if this tech bubble that they should apply the hong kong rule that the business should be profitable before ipo.
Not sure about the rules of the exchange where they are launching, but I believe that if the shares are unsold then the underwriting bank has to buy the remaining stock. So groupon's still going to get it's money (after the original vc investors take their cut) but it will be substantially less than they need to build a viable business (assuming they needed the original valuation), I think they'll tank inside of six months.
I honestly cannot see how Groupon is worth that much money. Unless the uptake of Garra rufa fish grows exponentially I would make an educated guess that this is the beginning of the next dotcom bust.
The edge to globalization is it gives you bigger pool to find morons with billions to waste. I guess enough people weren't around in 1999 to understand how pathetic this company really is. All they need is a sock for mascot.
What is the world coming to?
My first -- and last -- visit to Groupon was as a result of this article.
I despair that they think they're valued at this amount. Endless tat in no particular order; demands for one's email address... A business plan in search of idiots.
I obviously don't get it.
A fool and his money are...
a) soon parted
b) good news for worthless social media startups
c) going to ride the gravy train because Groupon are the Next Big Thing (TM) and viable business models are for losers
Mark all answers which apply
Stupid enough to think groupon is worth more than 2 bags of marbles and a packet of crisps deserves to have their money taken.
They have waited too long.
Their business is constantly declining. They owe more than they have coming by quite an alarming rate. They now have a load of competitors. There is nothing unique about their business model.
And to think they originally valued themselves at $30bn.
(PS: If you haven't already, google "groupon underpants yoga")
Friends tell me that is what I'd have to be taking to think this a good idea.
Unbelievable site. How is it worth anything at all?
I expected it to have loads of offers, but there are 4. A half day cake decorating course (located in a unit on an inustrial estate) for £35, which sounds about right for this type of leisure cookery course. It is supposedly reduced from over £100, which is way off the mark.
A satnav at exactly the same price as Halfords. Some iPod speakers at more or less the same price as Amazon. And a £72 hair cut (yeah right) reduced to £21.
Zero choice and the same price as everyone else. WTF?
La la land
Let's just use a recent, clearly profit making, example for a benchmark...
"Betfair floated on the London Stock Exchange with a stock symbol of BET on 22 October 2010 at £13, valuing the company at £1.4bn ($2.2bn)."
Opened today at 754.00, you do the math.
Pint, because there's no spliff icon which is what someone must be smoking.
Showing your ignorance?
You do know that the LSE quotes stocks in /pence/, don't you?
So from 13 pounds to 754 pence is a 42% drop.
On that basis, sadly, Groupon's share price could do anything...
But septics don't understand the decimal system...
...as evidenced by "Verizon doesn't know dollars from cents":
Speaking as someone who uses Betfair as a living, I can tell you that I am somewhat concerned about them and their business model.
They've managed to go from a Brilliant Operation That Would Find It Nigh On Impossible To Shoot Itself In The Foot to a Less Than Brilliant Operation Which Has Shot Itself In The Foot.
This goes to show that a profitable company with a near monopoly still can mess things up royally.
(AC - for obvious reasons)
Groupon - Useful but not that valuable
Ill admit to having used groupon a couple of times, have managed to get a couple of decent little deals/ideas out of it for weekends away.
But no way is it worth that sort of valuation, I reckon I might end up shorting groupon if it floats at $18
They should go down the lastminute route
Get stupid valuation
Pay initial investors and founders obscene money
Take cash remaining and buy profitable companies
Laugh all the way to the bank.