Print 4 comment(s) - last by tharik.. on Sep 8 at 1:37 PM

Groupon Chief Executive Andrew Mason  (Source:
Groupon is not cancelling the IPO, but is putting it on hold for the time being because of SEC questioning and the dismal outlook of developed economies' stock markets

Deal-of-the-day website Groupon has decided to delay its IPO for a few weeks due to questioning regarding the public float from regulators as well as the dismal outlook of developed economies' stock markets.

Groupon filed for a $750 million IPO in June, and was set to launch the final phase of its initial public offering in mid to late September. To make this deadline, Groupon would have had to offer a roadshow to attract potential investors within the next week or two, but the company called off its roadshow that was scheduled for next week.

Groupon is not cancelling the IPO, but is putting it on hold for the time being for a few reasons according to Reuters. 

daily deals company recently attracted attention from the U.S. Securities and Exchange Commission (SEC) when Groupon Chief Executive Andrew Mason released an internal memo to employees in August that "lashed out" at the company's critics was leaked to the media. The memo also discussed August revenue growth and Mason's confidence in the company's business. This was a problem because regulations limit what a company can say before a planned IPO. This has prompted questioning from SEC.

Groupon has other troubles on its hands as well, such as investor's worries about profitability of Groupon's business. The company is growing quickly, but also losing a lot of money. Its losses are greatly attributed to spending on new subscribers, but at the same time, Groupon may have to keep up its significant spending in order to 
attract new customers and keep the old. 

Mason responded to these worries by saying that new subscriber costs would decline over time because customers, once signed on, can easily be maintained through email alerts. Groupon also hopes to cut that cost to zero in less than three years, according to unidentified sources who have asked to be kept anonymous because the talks are private.

While Groupon intends to keep trucking along, other daily deals ventures have quit the business, attributing to the slow growth of daily deals in North America. For instance, Facebook quit its 
Deals service after a short four months of business.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: They should have...
By javiergf on 9/7/2011 1:45:43 PM , Rating: 3
Yep, Groupon is nothing more that a ponzi scheme, this company will never make any money but hey, I bet some people will pay a hundred dollar a share for another scam

"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Related Articles

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki