Groupon IPO Valuation up to $25 Billion [General]

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User Info	Groupon IPO Valuation up to $25 Billion in forum [General]
End_the_bubbles Posts: 9525 Incept: 2009-03-25 The New 3rd World	Quote: Groupon Said to Discuss IPO Valuation of Up to $25B in Talks with Banks By Douglas MacMillan - Mar 17, 2011 10:24 AM PT Groupon Inc. has held talks with banks about an initial public offering that would value the online-coupon company at as much as $25 billion, according to two people with knowledge of the discussions. The two-year-old startup’s IPO may happen this year and is unlikely to assign Groupon a valuation of less than $15 billion, the people told Bloomberg Businessweek. They asked not to be identified because the talks were private. Groupon, the top provider of online daily discounts, has pushed into hundreds of new cities and doubled its subscriber base over the past three months. That’s helped its valuation soar since December, when it turned down a bid from Google Inc. (GOOG) for $6 billion. The company now has 70 million users and reaches more than 500 markets, up from 300 when Google made its offer. Closely held consumer Internet companies like Groupon are “being valued as though they are going to be the next Google or EBay or Amazon,” said Claire Enders, the founder of London media-consulting company Enders Analysis. “But their business models may reach their limits a lot more quickly, or not work in as many markets.” Groupon was valued at about $1.3 billion last April, when it raised $135 million from investors, including Digital Sky Technologies. It contemplated more funding at a $3 billion valuation in November, shortly before Google’s offer. An investment of $950 million, completed in January, pegged Groupon’s worth at $4.75 billion. Clothes, Nail Salons Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) have discussed handling an IPO for Groupon, a person familiar with the talks said in January. Those meetings focused on a $15 billion valuation for a future IPO, the person said. A $25 billion valuation would put Groupon’s worth above Google’s when that company went public in 2004. Google, the world’s biggest Internet-search provider, had a valuation of $23 billion at the time of its IPO in August 2004. Julie Mossler, a spokeswoman for Groupon, declined to comment. Groupon, based in Chicago, offers daily discounts of as much as 90 percent from local businesses, such as restaurants, nail salons and clothing stores. It then keeps a portion of the revenue. While Groupon leads the daily-deal market, it faces mounting competition from rivals such as LivingSocial. That company is close to raising as much as $400 million in funding that would value it at more than $2 billion, two people with knowledge of the talks said this week. Even so, Groupon may have an edge as the biggest company in the industry, said Alex DeGroote, a media and technology analyst at Panmure Gordon & Co. in London. The daily deals business “is hot as anything, and no one knows where it’s going to tap out,” DeGroote said. “The experience of Internet companies shows that margins and profitability tend to accrue very substantially to the market leader.” To contact the reporters on this story: Douglas MacMillan in San Francisco at dmacmillan3@bloomberg.net To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net http://www.bloomberg.com/news/2011-03-17.... ---------- In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters. Last modified: 2011-03-17 19:49:34 by end_the_bubbles Reason: Heading. 2011-03-17 19:48:49 Permalink
The_venerable Posts: 4864 Incept: 2009-01-31 USD = toxic asset Banned	Talk about Nasdaq bubble '99 redux. ---------- The kingdom is falling. 2011-03-17 19:52:07 Permalink
Bogey Posts: 1302 Incept: 2008-03-12 Montana Banned	They got the money, hey You know they got away They headed down south and they're still running today Singin ... ---------- I don't mind Obama so much. It's the people in power that I can't stand. Last modified: 2011-03-17 20:35:55 by bogey Reason: better lyrics 2011-03-17 19:56:38 Permalink
Markgoldman Posts: 1241 Incept: 2009-01-13 Canuckistan	Holy ***. ---------- Consent Withdrawn. 2011-03-17 20:02:03 Permalink*
Macneib Posts: 3956 Incept: 2008-01-19 Seoul. What a ****hole	This explains why they laughed in the face of Google's $6B offer. Personally I would've taken the Google offer and GTFO'd. You all know this is going to end in tears for someone right? ---------- The worst thing about crossing a line is when you don’t know, you already have. 2011-03-17 20:21:29 Permalink
Antone Posts: 7695 Incept: 2008-02-03 Seditionia, USSA	Facebook I can somewhat understand. Twitter...maaaaayyybeeee. But Groupon? WTF? ---------- As if anything has changed: Wir sind gefickt. 2011-03-17 21:11:41 Permalink
Laswyguy Posts: 8326 Incept: 2007-07-25 Orange County, CA	and that's why I bankers get paid.. to raise money for you.. when you think its impossible. ---------- positive alpha - bitches! 2011-03-17 22:12:34 Permalink
Patmcgroin Posts: 8223 Incept: 2007-09-12 Chicago	At least Groupon has a way to get the money. ---------- "I know a few arcane, obscure financial acronyms that the general public doesn't know and that's about it." 2011-03-17 22:22:44 Permalink
End_the_bubbles Posts: 9525 Incept: 2009-03-25 The New 3rd World	Quote: This explains why they laughed in the face of Google's $6B offer. As I understand it, the Google offer was fake. It's all part of the Wall Street perception scam. They threw out that "offer" (promptly rejected) to help Wall Street create an aura of "value" for Groupon. Google was just doing a favor for it's old buddies (GS) who helped get their IPO off years back. $25 is a ***ing stretch though. Hell, so is $6, but they'll get it done, you watch........... ---------- In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters. 2011-03-17 22:24:29 Permalink*
Drumm23 Posts: 1216 Incept: 2008-02-14 Nurburgring	Prefer Groupon to Twitter to be honest, they're already making money and will make plenty in the future. Can't say the same about Twitter. I was in Dublin at the weekend and Groupon is going strong there, they're growing quickly. $25bln though? Think I'll pass. ---------- "If you don't know what you want...you end up with a lot you don't." — C. Palahniuk 2011-03-17 22:27:50 Permalink
Netpounder Posts: 1869 Incept: 2008-02-25 The greatest nation. Donation/USA.	Do I get a Groupon to buy Groupon stocks when it IPO's? I'll be checking my Groupon account for it. ---------- "If the world wants to make the region insecure, we will make the world insecure.” Iranian MP Parviz Sorouri 2011-03-18 01:59:24 Permalink
Gen_maximus57 Posts: 4580 Incept: 2007-09-03 Tampa	doesn't matter - it will be bought with OPM and everyone will get their commissions 2011-03-19 03:00:43 Permalink
Bergziege Posts: 2760 Incept: 2007-09-08 Central IL	Webvan 2.0 ---------- Luckily for me, a High Standard of Living is easy. All I require is Internet, a tv dinner and a blowjob and I'm the richest guy in the world. - Bozonian I've been chasing holes all my life and it doesn't always turn out bad. - Bozonian 2011-03-19 04:54:34 From PDA Permalink
Netpounder Posts: 1869 Incept: 2008-02-25 The greatest nation. Donation/USA.	Sounds like ... and will be like ... http://www.youtube.com/watch?v=G_pGT8Q_t.... ---------- "If the world wants to make the region insecure, we will make the world insecure.” Iranian MP Parviz Sorouri 2011-03-19 06:03:26 Permalink
Eighty6thebs Posts: 4184 Incept: 2007-06-26 It's contained to sub-prime!	1999 is here again. ---------- "Sounds to me like you guys a couple of bookies" - Billy Ray Valentine "No I am not scared, and neither should you be!" - Iraqi Information Minister 2011-03-19 09:42:05 Permalink
Antone Posts: 7695 Incept: 2008-02-03 Seditionia, USSA	I always thought that too, Netpounder. ---------- As if anything has changed: Wir sind gefickt. 2011-03-19 15:32:06 Permalink
Tunafish Posts: 70 Incept: 2007-08-28	http://www.youtube.com/watch?v=I6IQ_FOCE.... 2011-03-19 18:39:48 Permalink
Sleepycpa Posts: 677 Incept: 2010-04-01 East of the Cascades	My pepsi just shot out of my nose. This can't be real. I signed up, just for fun. If I wanted a spa treatment or manicure, I'd be in clover. What a bunch of crap. ---------- I used to believe my sig line. "Never attribute to malice that which is adequately explained by stupidity." 2011-03-19 18:55:44 Permalink
Ksfq Posts: 1109 Incept: 2007-07-11 California	I don't know, but Groupon is making a lot money. Much more money that Facebook now or Google in that stage. They have $4B in revenue (according to Bloomberg BusinessWeek article). And that can double that in 6 months. And they cost structure is very good: no need to hire expensive engineers (just bunch of tupperware salesman), no servers to run, no expensive offices, etc. Last modified: 2011-03-19 19:24:09 by ksfq 2011-03-19 19:23:44 Permalink
Matt Posts: 5358 Incept: 2007-06-26 Bothell, WA	Margin compression is going to hit that them and their competitors bad over the next couple years. I have a friend working in sales for their largest competitor, and the big players are all starting to try and underbid the competition to lock in the retailers (making his life more difficult). The insane profit margins are not sustainable as competition continues to heat up, and the industry become commoditized. ---------- I love the smell of burnt pump monkey in the morning. -Etz 2011-03-19 19:36:32 Permalink
Houstonstan Posts: 962 Incept: 2007-09-20 TX	Ksfg: It is a fad. What is to stop a competitor coming in and doing the same/similar? Already local competitors like free newspaper as matching them but with their local existing subscriber space. My own experience with Groupon has been mixed. It is a terrible business model for a company. I don't see it surviving. ---------- Hobbies: Masturbation and smoking. I'm a 40 day'er and I smoke a lot. 2011-03-20 00:15:40 Permalink
Thecat Posts: 756 Incept: 2008-10-06	@KSFQ : That's exactly why the valuation seems a bit left field. They have a very copyable model. Last modified: 2011-03-20 09:34:15 by thecat 2011-03-20 09:33:32 Permalink
Realistic Posts: 3106 Incept: 2008-02-15 California	The jealousy here is at stench levels ---------- "Insolvent Banks refusing to accept IOUs from an Insolvent State would be laughable if it weren't so damn pitiful." - LOL Damn... 9 percent plus unemployment, and ma bell being investigated... help I'm in the 80s! - Jeffrey_thomason 2011-03-20 13:55:05 Permalink
Uncleoxidant Posts: 2200 Incept: 2007-07-10 Stumptown	We're definitely in InternetBubble 2.0. Back in the summer I interviewed at a (then) small startup downtown. they were in very modest digs. Kind of cramped. About 5 engineers if I recall... Then in January they had a big party to celebrate their move to much bigger (10X) digs. They got VC funding and hired a bunch of engineers to fill that space. They had a live band, open bar and plenty of great food. Same day I attended a similar party at a mobile apps startup - very similar story. couple of weeks later, I attended a programming meeting at yet a third downtown startup - free food! Pizza, every kind of soft drink imaginable... their kitchen with 3 fridges was very well stocked... Big screen TVs all over the walls. VCs throwing money around. Also hearing that it's become very difficult to hire in Silicon Valley now... Yep, we're in another bubble. ---------- I am not a consumer. I am a Citizen! 2011-03-20 16:15:12 Permalink
Aliveh Posts: 4047 Incept: 2008-01-18 Los Angeles	this one makes no sense to me... no barriers to entry no first mover advantage already tons of competition from copycats LivingSocial, Daily Deal, Yelp Daily Deal. http://tomuse.com/group-buying-sites-cou.... I would not be shocked if they are gone in 10 years. Last modified: 2011-03-20 16:47:56 by aliveh 2011-03-20 16:46:58 Permalink

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