As many of you would know, Groupon is finally going IPO.
But, they are effectively insolvent as per this article.
It's an interesting study on the numbers
And the analysis is just as applicable in the type of smaller businesses you and I deal with.
It's also a great lesson on when to get out - when the hype is at its highest!
It's not a company that I would invest any money in before I read that. After reading that it could be worth a small punt of some money to maybe ride for 1 day from launch. It seems they have the talk of the town and lots of idiots out there, maybe I can reap a short ride.
Groupon's share price has dropped sharply. Based on this article today, Groupon is in serious trouble. The article could hardly be more scathing and it paints a very dismal picture indeed. If you're got a current claim for a refund, or have bought something that could result in a future claim ... are you sure you'll get your refund?
Chabrenas (April 1st, 2012)
Can anyone tell me what the underwriters of an IPO actually commit to do? Morgan Stanley, Goldman Sachs, Credit Suisse are not exactly upstarts, so if they were covering risks of part of the offering not selling, shouldn't their DD have included making a serious assessment of Groupon's apparently ever-changing accounts and business plan?
Clinton (April 1st, 2012)
I think they're experiencing trouble all round.
One my sites is an affiliate for Groupon and we have a good relationship with their affiliate guys in the UK. I received a heads up about a deal they were due to run with a major retailer offering a discount card for half price. With a days notice - the offer was mysteriously pulled before it ever went live but strangely around the same time all the negative publicity hit.
I've no idea what will happen with Groupon, but all their recent acquisitions are possibly a sign that they're not to sure either
Clinton (April 2nd, 2012)
Slightly off topic and sorry for the double post, but going off the info in the link I've just posted, does anyone know why they would go for a $16 million venture round just 1 month after raising $950 million in a series D?
As per the article, it was probably just the dotting of some previous i's and crossing of some previous t's that are completely unrelated to the previous day's deal.Originally Posted by flipfilter
Groupon recently named Starbucks founder Howard Schultz to the board, who then made a undisclosed investment to the company. Perhaps that’s actually what we’re seeing here — The date of the asset sale is February 10th, the very day that Schultz’s board seat was announced.
More bad news for Groupon - this article reports board members are leaving and the share price dropping even more. Howard Schultz didn't end up being a board member for even 3 months !
Clinton (May 1st, 2012)
A new article from Venturebeat published today suggests they are really getting their claws into Groupon
monty (May 9th, 2012)
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