Daily-deals provider Groupon was supposed to be the star of this year's IPOs. But over the last several months, the chances of Groupon becoming a disappointment to investors have skyrocketed.When Groupon filed its IPO papers in June, the excitement surrounding its decision was palpable. According to its filing, Groupon was planning to raise $750 million on its IPO, making it one of the largest public offerings this year. And although Groupon didn't comment on valuation, reports surfaced following its IPO filing, saying it could be valued at between $20 billion and $25 billion when it went public.… Read more
Daily deals provider Groupon might not go public on the inflated valuation that has been floated around over the last few months.
According to The Wall Street Journal, citing IPO analysts, Groupon might be valued at between $5 billion and $10 billion when the company finally offers its shares on the open market. Two major mutual funds that have invested in Groupon, Growth Fund of America and T. Rowe Price, have most recently valued the service provider at $9.5 billion and $8.7 billion, respectively, according to the Journal.
Those valuations stand in stark contrast to what many believed … Read more
One size daily deals don't fit everyone--not even Groupon.
In an effort to diversify revenue and maintain its rapid growth, Groupon, which has temporarily shelved its $750 million public offering, is fast evolving its business model. Recently Groupon deals have gone mobile, real-time, and location aware.
Today's launch of "Groupon Goods," however, marks the company's most aggressive departure away from its core daily deal offers. With Groupon Goods, the Chicago based company seems to be moving into full-blown e-commerce. If fully realized, that would put the company, valued at $20 billion, head-to-head with online retail … Read more
Daily-deals provider Groupon is still unsure about when it will be able to go public, a new report claims.
Citing an anonymous source, The Wall Street Journal says that Groupon's management doesn't know when it should finally offer its shares on the open market, citing concerns with increased government scrutiny and trouble on Wall Street.
Last week, the Securities and Exchange Commission forced Groupon to revise its filing papers after finding that the company mistakenly reported higher revenue than it should have. The daily-deals provider previously reported that it generated $713.4 million in revenue in 2010, but … Read more
Groupon, until recently, was the daily-deals darling.
But according to The Wall Street Journal, the Chicago-based company is slashing its reported revenues by half--from $713.4 million in 2010 down to $312.9 million--in accordance with accounting revisions prompted by the SEC. What's more, after only five months on the job, Groupon's second COO of the year has quit.
Groupon was recently compelled to change its accounting practices after discussions with the Securities and Exchange Commission (SEC). Valued at $20 billion, Groupon was on track to move forward with a $750 million IPO, but in June it was … Read more
Employees love their perks, be it cheap gym memberships, lower-priced ski lift tickets, or discounted restaurant meals, and a new startup is aiming to do for these kinds of rewards what Groupon and LivingSocial have done for local coupons.
The startup, Los Angeles-based BetterWorks, has a simple idea: reach out to local merchants and strike deals for year-round offers while at the same time signing up companies that will offer those deals to their employees. The result? The companies have new ways to incentivize workers, merchants have a new source of regular customers, and employees get a wide range of … Read more
I've been living in slight confusion lately, which has made it very hard to keep up with the hurtling sands of time.
So when I read moments ago that the U.S. Department of Justice had impounded the Full Tilt Poker Web site and accused the organization of being a "global Ponzi scheme," I thought that my mind had perhaps missed a day--or even a month.
Hot on the heels of Google's acquisition of German bargain site DailyDeal this week, a new report from private company research firm CB Insights reveals that the multitude of daily-deal sites will continue to contract via mergers and acquisitions but the valuations of the sites will decline very quickly.
According to the report, since their peak hit just two quarters ago in Q1 2011, the Price per Subscriber and Price per Voucher Sold multiples paid in private company M&A transactions have declined 36 percent and 40 percent respectively in Q3 2011.
The decline appears to be being … Read more
Too busy to keep up with today's tech news? Here are some of the more interesting stories from CNET and elsewhere for Monday, September 19.
Google Wallet launches today, but you probably can't use it yet. The digital wallet is available for the Samsung Nexus S on the Sprint Nextel network. The wallet uses near-field communication to allow you to pay with your mobile phone. "In the future, our goal is to make it possible for you to add all of your payment cards to Google Wallet, so you can say goodbye to even the biggest traditional … Read more
Google has acquired a German daily-deals provider as it tries to bolster its service to compete against a growing number of companies.
DailyDeal, which offers daily deals in Germany, Austria, and Switzerland, announced on its site that it has been acquired by Google for an undisclosed sum. The acquisition came rather quickly for DailyDeal: the company was founded in December 2009.
Google's acquisition should help improve its own daily-deals service, Offers. That service, which launched earlier this year, is currently in beta. The offering, which sends deals to users each day via e-mail, is available in a small number … Read more