Groupon IPO on hold

http://www.reuters.com/article/2011/09/06/groupon-ipo-idUSN1E7851CF20110906

by zwieback • 15 years ago

97 49 15 years ago

lambtron• 15 years ago

probably a good idea for groupon. though i enjoy bagging on Groupon's highly unconventional approach to wall street bankers in preparation for its IPO, seven years ago Google was in the same position [1]. Google exhibited hubris and showed no clear purpose for the proposed raised equity, ultimately IPOing shortly after the peak of its 'hotness'. That is not to suggest that Google's business is comparable to Groupon's, but that anything could happen. Google may have not IPO'd like a pro, but they are one of the largest shakers in the tech industry today.

[1] http://www.washingtonpost.com/ac2/wp-dyn/A14939-2004Aug19?la...

JacobAldridge• 15 years ago

The research I'm following [1] (and probably over simplifying here) indicates that the double dip in the stockmarkets will really kick off this month (Sept 2011) for at least 6 months.

Maybe Groupon thought they could sneak in ahead of that; maybe they thought the economy wouldn't double dip; maybe they thought there was enough positive momentum in the idea of Groupon that external factors wouldn't matter.

But the scary thing is that if they've heavily cut back on marketing AND they're low on cash as other reports have indicated, then they won't be able to postpone the IPO through until March 2012. They may be forced to list as the market tumbles or, best case scenario, at the bottom of the next bull run. Not ideal timing unless your definition of ideal involves "buy high, sell low".

[1] See all the economic articles by Darren Shirlaw here http://www.shirlawsonline.com/editorials . (Disclaimer: I'm completely biased because the companies I own are licensed through the company Darren founded, so part of everything I bill goes to his research and development team (and I've been part of that team for specific projects, including currently reviewing his articles and predictions from the past 4 years for a short book on navigating through it all).)

jonknee2• 15 years ago

... I think it's much more likely they didn't foresee the negative reaction that their IPO filing created. The buzz is bad, therefore they will try and refocus and won't do an IPO right now.

0x123• 15 years ago

It would probably be best for the whole segment if it got cancelled entirely. There are way too many questions about the long term viability of groupon to feel good about an IPO, as well as a possible SEC probe.

Groupon IPO on hold

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