Ahead Of IPO, Groupon Consolidates By Suing Ex-employees, Pitching New Version

http://www.blockread.com/2011/10/ahead-of-ipo-groupon-consolidates-by.html

by gaoprea • 15 years ago

29 14 15 years ago

zrgiu_• 15 years ago

How is that consolidation ? It's just a struggle for one more push before the IPO, one more spike for their company to be valued as high as possible. It's a smoke curtain. Don't get me wrong, if I were Groupon I would do the same thing, but please, don't call it "consolidation"

gaoprea• 15 years ago

I'm just being ironic ;)

raganwald• 15 years ago

Come now, isn’t it obvious that they’re consolidating their bad press? I mean, seriously, who reads about a lawsuit against ex-employees and thinks “Well, I wasn’t going to buy the stock, but now that I see what massive, cast-iron balls they have, I’m going to call my broker?”

It’s not like they are suing someone who might pay them hundreds of millions of dollars and it’s not like they have a chance of driving a major competitor right out of business. This is a nuisance move at best but at worst it reminds potential investors that they have serious competition. I’m obviously the last person anyone should ask for advice on how to run an IPO, but I would think that reminding the marketplace that you have competition and boasting about how you are easily distracted from running your business is not a good move.

twainer• 15 years ago

Quite right. I have followed investment events for quite some time and I cannot recall a shadier-looking company hitting the open market. It really boggles the mind: WHO is buying this? WHO is telling others to buy this? I know Warren Buffet isn't looking at any of this . . .

RexRollman• 15 years ago

I am not someone who buys stocks, and I really have no idea how the IPO will go, but Groupon strikes me as particularly unappealing company.

laluser• 15 years ago

I recently interviewed with Groupon just a few weeks ago. The people I met were all pretty laid back. It looks like the developers are treated nicely. Most of the people I talked to seem with the current state of things. Most of the site with the exception of some backend stuff is handled by rails, so you can imagine how much of a mess it must be to have 200+ developers writing feature after feature all on the same rails application (yes, I realize I am exaggerating a bit). I did get some impressive numbers on the number of deals that they have and some of the growth that they are experiencing, so that aspect was a bit impressive. I just wonder how many people are going to try to escape post-IPO.

lien2• 15 years ago

How can you sue your ex-employees and still feel good about the company IPO?

lien2• 15 years ago

what a petty move! management needs to grow up!

trailguru• 15 years ago

especially in California - good luck with that

URSpider94• 15 years ago

Groupon and its ex-employees appear to both be located in Illinois, according to TFA...

Steko• 15 years ago

Felix Salmon's recent write up:

http://blogs.reuters.com/felix-salmon/2011/10/21/the-groupon...

Overall, then, I think it’s pretty clear that people who think Groupon’s some kind of Ponzi scheme are wrong. There’s a real business here, with a real business model. The big question is whether Groupon can execute...

If I had to make a forecast, I’d say that Groupon is going to be around for the foreseeable future, but that the error bars ... are enormous. It could just slow down ... [or] become that thing everybody wants to be these days, a platform.

klochner• 15 years ago

http://en.wikipedia.org/wiki/Schadenfreude

oldstrangers• 15 years ago

Netflix is strangled by content providers, forced to pivot or bow out. Groupon flounders, is first of the big start ups to drop out. Gowalla and Posterous fight to see which of the little guys goes first, will try to be acquired, ultimately die. VC funding drops significantly, the mini bubble bursts, wall street panics.

</speculation>

hummingbird• 15 years ago

I suspect Groupon is fraud. They are a one time ripoff, and after that have no recurring customers. The faster they crash, the faster Silicon Valley can focus on value creating lasting startups.

Ahead Of IPO, Groupon Consolidates By Suing Ex-employees, Pitching New Version

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