Thursday, March 17, 2011

Groupon Valuation at $25B? Get Real, New Competitors Showing Up Daily

Bloomberg reports today that Groupon may be going for an IPO valuing the company at $25B. This is quite interesting as this week alone I have signed up for two competing services. Groupon must be in hurry to get this IPO done soon. Once it does, it might be the biggest short opportunity out there.

The Bloomberg report says that groupon has held talks with banks about a $25B IPO. "The two-year-old startup’s IPO may happen this year and is unlikely to assign Groupon a valuation of less than $15 billion, according to the people, Bloomberg Businessweek reports in its March 21 edition. They asked not to be identified because the talks were private".

"Groupon, the top provider of online daily discounts, has pushed into hundreds of new cities and doubled its subscriber base over the past three months. That’s helped its valuation soar since December, when it turned down a bid from Google Inc. for $6 billion. The company now has 70 million users and reaches more than 500 markets, up from 300 when Google made its offer".

The two servioces are (launching next week), and another one in Canada being launched CanadaPost (imagine the distribution channel, at least in Canada). There is another one that I saw yesterday.

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