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Groupon Files $750 Million IPO

Submitted by Tyler Durden on 06/02/2011 15:05 -0400

Here is the key data from the Morgan Stanley (lead Underwriter), Goldman Sachs and Credit Suisse-led IPO:

Q1 Revenue: $644 million, up from $44 million a year prior
Q1 Gross Profit: $270 million, 41.9% margin, up from $20 million a year prior, and down from the margin of 45.5%
Q1 Loss from operations: ($117) million compared to $8.5 million profit a year earlier.
Q1 subscribers: 83.1 million, up from 3.4 million
Q1 cash flow: $6.978 million down from $12.0 million a year earlier
Cumulative customers: 15.8 million, up from 874K
Featured merchants 56.781 up from 2,903
Groupons sold: 28 million compared to 1.76 million
Cash balance: $208.7 million; Working capital deficit: ($228.7) million
Total Assets: $541.4 million, Total Liabilities: $14.8 million
Total shares outstanding: 296,140,145
37.2% of GRPN sales came from outside of the US in 2010
Since inception GRPN has raised $1.1 billion from sales of common and preferred stock
The company had 7,107 employees at March 31, up from 37 on June 30, 2009
Andrew Mason's annual base salary is $575 as of January 1, 2011
The firm's former President and COO Robert Solomon, left the company on March 22, 2011, its former CTO Kenneth Pelletier, left GRPN on March 23, 2011.
Curiously, the company raised it raised $135 million at $32.12/share in its Series E round in April 2010, while in a subsequent Series G private round in December 2010, it raised $946 million, at $31.59 per share. Downround?

Use of Proceeds: "We intend to use the net proceeds to us from this offering for working capital and other general corporate purposes, which may include the acquisition of other businesses, products or technologies; however, we do not have any commitments for any acquisitions at this time. We will have broad discretion in the way we use the net proceeds. Pending use of the net proceeds as described above, we intend to invest the net proceeds in money market funds and investment grade debt securities. "

GRPN believes with the cash from the IPO, it should have enough money to last it 12 months: "Although we can provide no assurances, we believe that the net proceeds from this offering, together with our available cash and cash equivalents balance and cash generated from operations, should be sufficient to meet our working capital requirements and other capital expenditures for the next twelve months."

An amusing risk factor:

If securities analysts do not
publish research or if securities analysts or other third parties
publish inaccurate or unfavorable research about us, the price of our
Class A common stock could decline.

The trading market
for our Class A common stock will rely in part on the research and
reports that securities analysts and other third parties choose to
publish about us. We do not control these analysts or other third
parties. The price of our Class A common stock could decline if one or
more securities analysts downgrade our Class A common stock or if one or
more securities analysts or other third parties publish inaccurate or
unfavorable research about us or cease publishing reports about us.

And from the Legal Procedings:

The Company currently is involved in several disputes or regulatory inquiries, including suits by its customers (individually or as class actions) alleging, among other things, violation of the Credit Card Accountability, Responsibility and Disclosure Act and state laws governing gift cards, stored value cards and coupons, violations of unclaimed and abandoned property laws and violations of privacy laws. The number of these disputes and inquiries is increasing. Any claims or regulatory actions against the Company, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, injunctive relief or increased costs of doing business through adverse judgment or settlement, require the Company to change its business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm the Company's business.

In addition, third parties have from time to time claimed, and others may claim in the future, that the Company has infringed their intellectual property rights. The Company is subject to intellectual property disputes, and expects that it will increasingly be subject to intellectual property infringement claims as its services expand in scope and complexity. The Company has in the past been forced to litigate such claims. The Company may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act are interpreted by the courts, and as the Company becomes subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries are either unclear or less favorable. The Company believes that additional lawsuits alleging that it has violated patent, copyright or trademark laws will be filed against it. Intellectual property claims, whether meritorious or not, are time consuming and costly to resolve, could require expensive changes in the Company's methods of doing business, or could require it to enter into costly royalty or licensing agreements.

From time to time, the Company may become party to additional litigation incident to the ordinary course of business. The Company assesses the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, the Company considers other relevant factors that could impact its ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. The Company's reserves may change in the future due to new developments or changes in strategy in handling these matters. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Full filing can be found here.

- advertisements -

Thu, 06/02/2011 - 15:11 | 1333498 firstdivision

What is the Groupon deal if I get 4 people to buy shares?

Thu, 06/02/2011 - 15:39 | 1333628 What does it al...

Well, just like the ipo, it will pop for the instutional guys and then settle lower.

Just like the deals they have.... all marked higher and the promised a 50% reduction... There is no one that would buy anything without a coupon for a repeat business.

This is definitely the beginning of a bubble. Why don't we learn anything from Dot Com days. There is no competitive advantage here, Rue La La, Living Social, Gilt...

It might take 2-3 months to sort out this party, but damn, it will make 2008 and 2001 looks like a party...

Now is the time to figure out how to short/borrow/synthetically short these guys... Even at 120% borrow rate for LNKD, shorting it was the right call.

Thu, 06/02/2011 - 15:43 | 1333648 mikla

Thu, 06/02/2011 - 15:43 | 1333667 Cursive

@Mikla

LOL. Sums it up. I mean a fucking fly by night glorified green stamps operation.

Thu, 06/02/2011 - 15:54 | 1333700 andybev01

"Green Stamps"...your age is showing.

But then again, so is mine.

Thu, 06/02/2011 - 15:54 | 1333707 What does it al...

They pulled the trigger the day after the biggest loss since Aug. 2010. Just like a stop loss order, they don't want to miss the window when the S&P goes sub 1,000 or 800..

Seriously, at one point, YHOO is unbeatable... now, they allow you to login to their email using google accounts and/or Facebook... WTF...

Thu, 06/02/2011 - 16:01 | 1333731 UGrev

wtf is "Groupon" ?

never heard of it until today, ironically, on Linked In.. lol

Thu, 06/02/2011 - 16:15 | 1333797 TruthInSunshine

It's a lame ass, money losing (Tyler, I read GO lost 400 million last year) turd of another 'hot' stock that is coming out just in time for a prelude to a mortal wound just like in 2000, when traders believed in Unicorns and Magic Pixie Dust with anything being pumped by the shysters.

Yes, sir, a bag full of LNKD, Group On, and some Chinese RINO and solar companies, and one will be set for life, living on the corner of Easy Street and Good Times Avenue, well into their retirement!

/sarc

Thu, 06/02/2011 - 15:53 | 1333704 Manthong

Dipweeds should've taken the $6B buyout from Google.

Thu, 06/02/2011 - 16:01 | 1333718 What does it al...

That was pure hype from the IBers, never confirmed. More like a 600M or 60M buy out. Bear in mind, they were NEVER profitable. Low barrier of entry. And lack a repeatable business model.

It's fine to buy a 50% coupon from them... but then again, I can do that from any one of its competitors... and I would never visit any of the businesses, without the subsidy. (Just like the govt housing purchase tax breaks earlier this year... only accelerate the demand curve forward, not generating new demand... ) Remember Kozmo? Cyberrebate? I can go on and on and on...

We would never learn.

Thu, 06/02/2011 - 16:06 | 1333748 Manthong

Yep, not much of a unique selling proposition.

In the hype though, they claimed high seven figure revenue. Also about a billion in venture capital in. I, for the life of me couldn't figure out how they could swing all that. Like their long term business prospects, all smoke I guess.

Thu, 06/02/2011 - 16:16 | 1333774 What does it al...

Their revenue goes out the window as fast as they come in. Thus net negative.

The real question is: Why are the investment banks allow to decide who to "go public"? Isn't that the exact definiton of oligopoly? The entire capital raising process is flawed, it is all a casino...

The Cabal decides on who to make rich. Google instead of Altavista, Groupon instead of Rue La La, Facebook instead of MySpace. EVERYTHING is rigged.

Here is where I applaud Craiglist...

Thu, 06/02/2011 - 16:18 | 1333802 NotApplicable

The IRS will take care of Craigslist, and those 'evil black markets.' Just you wait and see.

Thu, 06/02/2011 - 16:29 | 1333837 dark pools of soros

how will they fight bitcoins?? will be interesting

Thu, 06/02/2011 - 15:11 | 1333501 qussl3

Fucking Top.

Thu, 06/02/2011 - 15:18 | 1333539 magpie

No, Facebook will be the top.
But by then, you'll gladly buy EU and China Sovbonds anyway.

Thu, 06/02/2011 - 15:18 | 1333560 qussl3

facebook is everywhere, pervasive like google.

It demands huge attention from a good chunk of its user.

Groupon is a fucking clown party discount service.

Thu, 06/02/2011 - 15:47 | 1333680 Cleanclog

Agree. I would buy Facebook, depending on terms, but Groupon - no way! Ditto for Ruelala and Jewelmint and the rest of these easy to copy yet quick to have margins knocked down quite quickly. FB more difficult to recreate. A huge community exists there with real driving power. Tumblr not so much, but still better than Groupon, Linkedin, Ruelala etc.

Thu, 06/02/2011 - 15:12 | 1333503 Robot Traders Mom

I'm actually getting kind of excited for the ponzi scheme that is our financial system, to end...

Although you can never tell when it will end, this all but confirms it.

Thu, 06/02/2011 - 15:09 | 1333507 shushup

It's crap - wouldn't touch it. Not would I even look for their groupons.

Thu, 06/02/2011 - 15:11 | 1333517 Cleanclog

In San Francisco Bay Area, the daily Groupon opportunities by email have been 1) Lame; 2) coached companies to run their prices up for month preceeding the "featured" 1/2 off or whatever Groupon promotion; 3) needs better partners - targeted Twitter, other social media that really knows where person is and then offers "deals" right in front of them.

My two cents. Still, the fools will pile on and soar the deal before it gets pricked and drops.

Thu, 06/02/2011 - 15:16 | 1333547 chet

Google is already shopping it's coupon service around.

Low barrier to entry for these internet companies. You have to race like hell to be the first and biggest and hope to get established. Worked for some like Amazon. Failed for others like MySpace and AltaVista and countless others no one even remembers.

Thu, 06/02/2011 - 17:17 | 1334001 Mikebrah

Lets be fair here....Google and Facebook respectively killed Altavista and MySpace. While I wouldn't touch the GRPN stock, or even Facebook if/when it IPOs there is no denying that Google is/was a far, far superior search engine than Altavista. That is why it got so popular in the first place, remember?

Same with Facebook. It originated with college kids and was initially exclusively for that demographic. This created a huge, legitimate network that created enough self-sustaining momentum and kept it on the legitimate track. MySpace was open to any ass-clown with a computer and it rapidly turned into a sketchy, pedophile hotspot.

Again, I'm not debating the stock valuations of any of the abovementioned companies but to suggest it was all a total fluke is inaccurate. Google was amazingly simple and intuitive. Facebook, same thing plus it felt "safe" to its users (although it most likely isn't). These were deliberate marketing ploys. Google still looks the same as it did 10 years ago. It's the most simple, yet highly functional search out there.

Just my $.02

Thu, 06/02/2011 - 17:47 | 1334077 chet

I don't think it was a fluke. But I think that both AltaVista and MySpace show how internet companies are always vulnerable to someone coming along and doing it better.

It could happen to Google or Facebook too. Though Google has so much money and market share now that they set a high bar to overcome.

But Facebook may be just as vulnerable as MySpace. There could be a guy named Zark Muckerberg writing code in a dorm room right now. That's why they shouldn't have these ridiculous valuations.

Thu, 06/02/2011 - 20:39 | 1334465 Mikebrah

Truth.

Thu, 06/02/2011 - 15:42 | 1333643 Dingleberry Jones

Cleanclog, what is the source image for your icon? It's fantastic.

Thu, 06/02/2011 - 15:49 | 1333679 Cursive

And who is that? Chin is reminescent of Cybil Sheppard.

Thu, 06/02/2011 - 15:52 | 1333688 Cleanclog

You are all too flattering. Photographer is a friend.

Thu, 06/02/2011 - 16:12 | 1333761 Cursive

Bet that's an interesting portfolio. :)

Thu, 06/02/2011 - 16:48 | 1333898 Dingleberry Jones

Wait, are you saying that it's you? Regardless, it's a ridiculously impressive picture.

Thu, 06/02/2011 - 23:52 | 1334826 longorshort

You really are a stupid fucktard. Folks read this as work and your not just showing cleavage there. We have enough unemployed people in the economy and do not need pictures of your fat ass adding to it.

Thu, 06/02/2011 - 23:36 | 1334812 longorshort

You know dumbfuck, take some of your coupon money and buy some clothes for your profile. Does anyone look at this shit here WTF.

Thu, 06/02/2011 - 15:11 | 1333519 sabra1

buy, and then short immediatly!

Thu, 06/02/2011 - 15:20 | 1333566 TheTmfreak

Don't want to be the 122 dollar LNKD guy.

Thu, 06/02/2011 - 15:12 | 1333522 chet

Hey, there's a whole new generation of traders on Wall Street and off that don't even remember 1999.

Thu, 06/02/2011 - 16:28 | 1333843 dark pools of soros

exactly. load up the truck with some Z and P coming later this year!!! One letter NAZ stocks are all the rage!!!

Thu, 06/02/2011 - 15:15 | 1333523 buzzsaw99

With a growth rate like that you gotta be a buyer bitchez!

Thu, 06/02/2011 - 15:12 | 1333525 XenoFrog

Buy! buy! buy! *frothing at the mouth*

Thu, 06/02/2011 - 15:12 | 1333527 TooBearish

TY- Is this gunna be priced tonite??? thx

Thu, 06/02/2011 - 15:16 | 1333533 lizzy36

SHOW ME THE MONEY before QE2 ends....quickly.

Thu, 06/02/2011 - 15:32 | 1333613 Bam_Man

Yup.

This might be the last chance to fleece the retail crowd for quite a while.

Thu, 06/02/2011 - 15:39 | 1333646 chet

Just like the dotcom days. Build up just enough of a something to take it public. The founders become very rich, don't give a crud if the company is still around in two years. The IPO is the target, not a sustainable company.

I agree that time is very short for this round of nonsense.

Thu, 06/02/2011 - 15:18 | 1333541 rumblefish

another wtf stock.

go figure....LKND is up and silver is down.

Thu, 06/02/2011 - 15:18 | 1333562 RobotTrader

"Social Media" is the next bubble to be blown by Wall St. to create yet another frenzy.

Silver bubble already popped, it might re-emerge later this year.

Thu, 06/02/2011 - 15:38 | 1333572 rumblefish

i don't believe sound money is in a bubble mr.robot.

I do believe market dillusion is beyond bubbles.

Thu, 06/02/2011 - 15:44 | 1333672 Bay of Pigs

Once a bubble is popped, it doesn't "re-emerge", whatever the hell that's supposed to mean.

Silver and gold are the opposite of a bubble Robot Fader.

Thu, 06/02/2011 - 16:33 | 1333850 dark pools of soros

Robot blows bubbles outta his rear unit

Thu, 06/02/2011 - 15:20 | 1333549 JW n FL

I am gonna buy it...

and hold it....

and name it george...

and Love it...

and pet it...

and keep it forever....

buy early and get the fuck out! and then buy back in after the fall.. as coupons? may have a following in the near future that is even stronger that it has now!

Thu, 06/02/2011 - 15:43 | 1333651 I am a Man I am...

http://www.youtube.com/watch?v=2JlVqfC8-UI

Thu, 06/02/2011 - 15:53 | 1333693 Sokhmate

ANother better name for it would be Stinky, a la Stimpy's infamous fart.

Thu, 06/02/2011 - 23:53 | 1334829 longorshort

I will give you a dollar to quit posting.

Thu, 06/02/2011 - 15:20 | 1333551 b_thunder

i've signed up for gropon. i'm one of the 80+ mm "subscribers."

i got exactly 1 deal - $7 for $15 Ebay certificate. i do not intend to buy anyhting from them ever again. do they count me as a "subscriber"? yes. will they ever see a panny from me? no.

trade accordingly.

Thu, 06/02/2011 - 15:22 | 1333576 rumblefish

as a user....do you understand how they make money?

Thu, 06/02/2011 - 15:27 | 1333604 Joe Davola

It appears they don't either.

Thu, 06/02/2011 - 16:09 | 1333741 What does it al...

As another user with a similiar purchasing history... I don't really care about how Groupon "loses" money. I signed up 3 times, using 3 different email addresses to buy their fandango movie tickets deals. (And still haven't used them yet.)

At least the Dot Com days, it was really innovative. None of this Web 2.0 is that revolutionary... Facebook is a mistake that Yahoo and Google made, for not adding a community feature....

In retrospect, at least Ipod, Iphone and Ipad are well engineered product on borrowed ideas. At least they were designed well.

Thu, 06/02/2011 - 15:32 | 1333614 wandstrasse

they have nothing, let it look like something, and get a lot of fiat for it. Just like the entire system. BTW, is there still anybody looking at fundamentials for investment decisions???? This is like checking the wind before you get in a motorboat.

Thu, 06/02/2011 - 15:56 | 1333714 qussl3

I signed up twice, once to help a friend the other my brother.

Both were so pschyed for the discounts.

They both were enthusiastic for all of a week.

None of us has used it since.

This experience has been repeated multiple times among our circle.

Company is a joke.

Thu, 06/02/2011 - 15:20 | 1333554 RobotTrader

What's the ticker symbol?

I wanna buy!!!

LOL....

Thu, 06/02/2011 - 15:20 | 1333569 What_Me_Worry

NOL

Thu, 06/02/2011 - 15:22 | 1333582 mynhair

Not GROP? Darn.

Thu, 06/02/2011 - 15:22 | 1333577 DonnieD

P&D

Thu, 06/02/2011 - 15:36 | 1333620 HelluvaEngineer

We kinda already knew that.

Thu, 06/02/2011 - 15:32 | 1333621 Bam_Man

Ticker symbol is GROPN.

Homeland Security airport checkpoint staff will be offered a 20% discount on IPO shares.

Thu, 06/02/2011 - 15:19 | 1333564 CH1

Insanity on ice.

Thu, 06/02/2011 - 15:25 | 1333575 Scarlo

What can they do that LivingSocial or all the other come latelys cannot? Great short oppty if it prices high enough. Of course, it could end up floating into space like CRM.

Thu, 06/02/2011 - 15:27 | 1333591 williambanzai7

Oh my...

Thu, 06/02/2011 - 18:34 | 1334186 CPL

This has the best properties of a short. Good money in tanking this crap into the ground Will.

Thu, 06/02/2011 - 15:28 | 1333594 What_Me_Worry

I just bought a groupon before coming here. They just gave my wife a $30 credit for me buying a $10 groupon to give to her. Their strategy for new customers is bound for success.

I still would rather own Groupon than LinkedIn.

Thu, 06/02/2011 - 15:43 | 1333666 chet

Giving away freebies to gain "eyeballs" and "users" while they hemorage money. A classic business model.

God, this is truly making me nostalgic for my first post-college job at the old dotcom in Redmond, Washington. No one here would even remember its name.

Thu, 06/02/2011 - 15:55 | 1333702 Sokhmate

Was it by any chance the fish-related-company-turned-internet-company Zapata?

Jk.

Thu, 06/02/2011 - 16:15 | 1333794 chet

No, it was called "imandi.com". Lowercase "i" of course.

We went from five people in a garage, to a hundred people in a business park, to out of business in about two years. All on some VC's money. Never made it to IPO.

It was a lot of fun for me. We younger employees partied, naively imagined our future riches, and when it all went to crap, hadn't really lost anything. Gained a lot of insight actually watching the entire growth cycle of a company from a seat near the highest management.

Thu, 06/02/2011 - 16:21 | 1333801 blunderdog

Same here. Wasn't my first gig, I was in management, but my former employer was slated for an IPO in August 2000.

If we'd been just a few months quicker, I'd likely still be there. We had most of the code/DB infrastructure that Facebook built. Targeted advertising and mobile were both near best-of-breed at the time. Just didn't hang on long enough before flameout after the IPO opportunity was lost.

Thu, 06/02/2011 - 17:57 | 1334105 cxl9

Giving away freebies to gain "eyeballs" and "users" while they hemorage money. A classic business model.

Indeed. Why doesn't someone just cut right to the finish and start a web business which sells $1 bills for $0.80 and makes up the difference with advertising? (Premium accounts get $5 bills for $4.50). Why bother making/selling a product at all anymore?

Thu, 06/02/2011 - 18:15 | 1334148 blunderdog

That'd beat farmin.

Thu, 06/02/2011 - 15:26 | 1333597 I am a Man I am...

GS and company doing the EXACT same fucking thing as they did in the .com bubble, people are stupid and deserve to lose their money

Thu, 06/02/2011 - 15:26 | 1333599 youngman

One that will make good money now and huge money later will be Grope Me.....a hooker site...with the economy the way it is...there is going to be a lot more hookers plying their trade....

Thu, 06/02/2011 - 15:28 | 1333610 augie

Genius.

Thu, 06/02/2011 - 15:30 | 1333602 augie

I am going to buy, SOOOO MANY PUTS.

Thu, 06/02/2011 - 16:14 | 1333772 Poule Mouillee

Puts on Call girls. Interesting...

Thu, 06/02/2011 - 15:27 | 1333607 ghostfaceinvestah

AWESOME!!! Cannot wait to short this one. After the dot-com bubble I swore I would never miss an opportunity to short overhyped names like that again. This will be the Webvan of this bubble. Guaranteed they are out of business in five years.

Thu, 06/02/2011 - 16:18 | 1333804 What does it al...

Hey, I am sure it is a good place to be for the next 6 months. Just get out and cash out before it collapses.

Thu, 06/02/2011 - 16:32 | 1333845 NotApplicable

You might recall there was still some semblance of a market back in the Webvan days. In today's world, insolvency means nothing if a zombie corp suits someone's needs. Having confidence in a fake market is a dangerous proposition, whether short or long.

Thu, 06/02/2011 - 15:28 | 1333609 Seasmoke

i have tried for 2 months to "spend" a free $10 gift card i have for groupon....for some reason they think i want to drive 60 miles or into city for a coupon.......i still have that $10 gift card

i wouldnt pay 2 cents for groupon stock

Thu, 06/02/2011 - 15:58 | 1333711 Sokhmate

groupon stock should be priced in ... groupons.

Thu, 06/02/2011 - 16:23 | 1333813 What does it al...

It will be...

Thu, 06/02/2011 - 15:29 | 1333616 traderjoe

Another 'service' that the Merchant and retail sheeple use to destroy their own economy. Like not caring that constantly buying disposable Chinese toys at Wal-Mart destroys their own manufacturing and main street retailers. Like hating the banks and having a checking account at BAC. The biggest power we have is as consumers.

Groupon destroys the perception of value and transfers all of the profit to one more faceless Internet company. It does nothing to establish a relationship between consumer and shopkeeper.

One of those times where people willingly are leading themselves to their own demise...

Thu, 06/02/2011 - 16:32 | 1333859 NotApplicable

Just curious, other than burning cash to obtain a critical mass of eyeballs, what exactly does Groupon do that is so destructive?

Also, how many centuries does a toy need to last?

Thu, 06/02/2011 - 18:28 | 1334174 traderjoe

Over 30% of businesses lose money on Groupon according to a recent study. The others have demonstrated to customers that there is no value in paying full price. In addition, the businesses are giving 50% of their revenue to Groupon in the deal. They are getting only 25% of full price.

Toys don't have to last forever, but the cheap plastic crap over packaged so it can be shipped in containers merely perpetuates the consumer-driven disposable world...do you have kids? Have you tried to look for alternative made in the USA toys?

Thu, 06/02/2011 - 15:32 | 1333619 HUGE_Gamma

Use of Proceeds: "We intend to use the net proceeds to us from this offering for hookers and blow. "

Thu, 06/02/2011 - 16:32 | 1333858 hamurobby

"GRPN believes with the cash from the IPO, it should have enough money to last it 12 months:"

Its going to be one hell of a party.

Thu, 06/02/2011 - 15:36 | 1333622 ghostfaceinvestah

Hard to believe that Bernanke can see this sort of shit going on and not realize he is promoting another bubble. Or maybe he does realize it, but does he have any clue the economic devastation that will ensue when this one pops? If you think California has troubles now, wait until this latest tech bubble pops and decimates any tax base they have left.

Thu, 06/02/2011 - 15:33 | 1333624 camoes

Is this another of one of those Chinese reverse merger scams, TD?

Thu, 06/02/2011 - 15:37 | 1333626 nodoctor

Tell me if I did this correctly...

(total assets minus total liabilities) / outstanding shares = target price per share

(541.4MM - 14.8MM) / 296140145 = $1.78

Thu, 06/02/2011 - 15:39 | 1333631 HUGE_Gamma

X PE of 1000 and...

Thu, 06/02/2011 - 17:42 | 1334076 Quantum Nucleonics

That would be called book value. Add a couple zeros for the IPO price. If it went out at $18 billion (3x Google's offer), that would be $60/share.

Thu, 06/02/2011 - 15:34 | 1333627 ParaZite

To all of my friends who have some money to piss away, I mean invest, I mean really piss away... Groupon is offering an IPO. They only lost 413 million in 2010 on a revenue of 713 million. WINNING! Seriously, if you are just going to throw your money away, hand it to me in a paper bag.

Thu, 06/02/2011 - 16:44 | 1333883 CH1

Hand it to ME!!

At least I'll look you in the eyes and give you a thoughtful Thank You.

Thu, 06/02/2011 - 15:39 | 1333632 monopoly

They will never learn. Greed is paramount and runs this planet. Beyond words.

Thu, 06/02/2011 - 15:42 | 1333645 theotheri

I was offered Facebook secondary market shares at $75B valuation. I turned it down. What do you guys think?

Thu, 06/02/2011 - 15:41 | 1333653 lizzy36

I blame "The Facebook" for this crap.

Mind you i though google has lost its mind when it tried to take out Groupon for $6B last year. Although for full disclosure at that point i uttered the phrase "what the hell is a Groupon".

Thu, 06/02/2011 - 15:46 | 1333660 GFORCE

Hilarious. Maybe the GM and Linkd investors will want to diversify??

Thu, 06/02/2011 - 15:42 | 1333661 spartan117

They should have taken the $5 billion offer from Google. Bunch of idiots.

Thu, 06/02/2011 - 15:50 | 1333684 mynhair

M&A chasers moving on SSN.

Thu, 06/02/2011 - 15:53 | 1333694 RobotTrader

Always a bubble somewhere.

Courtesy of 3% 10-yr. yields.

Carry trades are simply irresistable.

Thu, 06/02/2011 - 15:50 | 1333697 ParaZite

Maybe they are doing some new math I am unaware of... but...

If you make 713 million... and at the end of the day you have lost 413 million.. you have spent 1,126 million... or 1 billion 126 million.

Sounds like a money pit to me.

Thu, 06/02/2011 - 15:54 | 1333710 Soul Train

Pure crap.

These junk IPOs being fed to the public are a sure sign of the end of this equity uptrend.

As obvious as it is to us, it amazes me how we have to go through these bullshit IPO come ons at every market top, while waiting for the balloon to pop.

Thu, 06/02/2011 - 16:14 | 1333729 plocequ1

Silly rabbit, IPOs are for club members. The same club that the great George Carlin refers to... " Its a big club, And you aint in it"

Thu, 06/02/2011 - 16:27 | 1333829 Diablo

amen brother

http://www.youtube.com/watch?v=i5dBZDSSky0

RIP George Carlin

Thu, 06/02/2011 - 16:10 | 1333755 MrSilverAG

Pending use of the net proceeds as described above, we intend to invest the net proceeds in money market funds and investment grade debt securities.

Aaaand, its GONE.

http://www.youtube.com/watch?v=RAKsMnAM8vk

Thu, 06/02/2011 - 16:15 | 1333770 zebra

Cumulative customers: 15.8 million, up from 874K

i myself am 10 customers of Groupon.

internet is all ficticious, all you need is an email address.

Thu, 06/02/2011 - 16:14 | 1333773 Atomizer

Can O'bama use Groupon's to pay down the US debt?

Thu, 06/02/2011 - 16:14 | 1333775 HomoHominiLupus

"We will have broad discretion in the way we use the net proceeds."

Hank Paulson, is that you?

Thu, 06/02/2011 - 16:28 | 1333835 TheAkashicRecord

Coupons you need to print instead of cut = new economy = progress.

Thu, 06/02/2011 - 16:35 | 1333867 NotApplicable

Wasting most of a sheet of paper in the process. (printed out a 3x3 coupon for lunch earlier)

Thu, 06/02/2011 - 16:26 | 1333838 HomeyDClown

the numbers posted in the post are Q1 numbers, not annual #'s so annual revenue will be 2.x B, not $600M... might change the math. Although I always thought if you were an "early investor" you'd get a better deal. seemingly the invested capital valuations might not be their typical 10x on IPO. and guess who will make out - the guys who put in the initial capital - probably forcing IPO so that they can get their money back out... but real value comes at pricing the offer now doesn't it. can't wait for FB IPO - $75B pricing - right in future land maybe, but when real underwriters get there reality sets in... Goldman folks do know how to make money... off the poor consumer bastards. I can just hear the financial analyst telling aunt sally - "sally" you should really buy groupon cause it's a long term player"... of course there is linkedin...

Coming soon (+18 months from now) will be Microsoft with the new "Bing Coupon Manager 2013 - simply download, install 32 patches and start grabbing coupons...

man Homey in a wierd mood.

Thu, 06/02/2011 - 16:31 | 1333842 Use of Weapons

Remind me what happens when all the businesses Groupon serves go bankrupt due to them living in a high-street economy, and there's only Walmart left, again... Aren't they called EBTs or something in your country?

The deals don't even make sense in Engrish.

"Making a long-lasting first impression requires a fashionable wardrobe, an eloquent salutation, and a firm step in prehistoric mud. Cultivate an elegantly evolving wardrobe with today’s Groupon: for $10, you get $20 worth of graphic tees, dresses, and other summer apparel at Old Navy. This Groupon expires July 30."

This deal appears to be some kind of mutagenic magic potion for australopithecus', but the jury is out.

Thu, 06/02/2011 - 16:34 | 1333854 SilverDoctors

The REAL question is when's the ZeroHedge IPO!?!

http://www.silverdoctors.com/

Thu, 06/02/2011 - 18:06 | 1334122 rumblefish

maybe tyler would disclose ZH's # for us to digest?

Thu, 06/02/2011 - 16:54 | 1333913 Piranhanoia

You've selected the curtain and whats behind it! Its shit! Ah, but its really good shit Mrs. Envelope

Thu, 06/02/2011 - 16:59 | 1333931 RichardENixon

Total assets 541.4 million, cash 208.7 million, liabilities 14.8 million and a working capital deficit of 228.7 million. That's an interesting balance sheet.

Thu, 06/02/2011 - 17:16 | 1333992 Caveman93

My turds are going IPO tomorrow. Hoping to generate some revenue because I am so far in debt it's frightening! Should I offer a "Certificate of Authenticity" with each one or perhaps a nice 24KT gold plated "Proof" Buffalo coin?

Thu, 06/02/2011 - 17:36 | 1334063 ThisIsBob

Too late... yawn.

Thu, 06/02/2011 - 17:50 | 1334088 Quantum Nucleonics

I smell some panic in the IPO machine.

Thu, 06/02/2011 - 18:09 | 1334132 Waterfallsparkles

Cramer just told his home gamers to buy Groupon. Get in on the ground floor.

Thu, 06/02/2011 - 19:35 | 1334288 Use of Weapons

Ok, opening myself up here - so flay me alive for this one, but: full disclosure, late n tired.

Can anyone explain why P48, the % ratios are actually getting worse as the company gets bigger? What happened to economies of scale & buying power?

Anyhow the recent sales of unregistered securities reads like the IPO is a 'done deal', if you know what I mean.

[edit]

Picked up and run with http://allthingsd.com/20110602/where-did-groupons-billion-dollars-go/

via http://news.ycombinator.com/

Ugh. Late to this party: http://blogs.forbes.com/ericsavitz/2011/06/02/deja-vu-groupons-bubble-1-...

Fri, 06/03/2011 - 02:06 | 1334951 SoCalBusted

I was thinking the same thing. Maybe they are operating under the "we'll make it up in volume" strategy.

Thu, 06/02/2011 - 20:18 | 1334427 Thunderlips

I can't figure Groupon out. I signed up a few weeks ago and all I get is "Aqualipo" (is that a spa treatment or actual plastic surgery?), Belly Dancing Lessons, Pole Dancing Lessons, Lingerie Superstore discounts etc.

I would not subject anybody to see my hairy ass bellydancing in lingerie.

The target market seems to be either Trophy Wives or Strippers. Now, strip club discounts, 50% off Newcastle, 25% off New Egg or Amazon.com, THAT is worth while.

Thu, 06/02/2011 - 20:20 | 1334437 Thunderlips

Think about Groupon.

They offer 50% off a nice dinner. Two entrees, dessert, glass of wine. $40. Not bad.

But what happens without the groupon?

"Ah, it was good, but not $80 good."

Thu, 06/02/2011 - 22:38 | 1334679 ejhickey

Groupon received a $3.5 million aid package from the state of Illinois details listed in the following story in Chicago Sun times Deal of the day: 250 new jobs at Groupon

Sun-Times Media Wire Oct 19, 2010

Thu, 06/02/2011 - 23:47 | 1334820 longorshort

Coupons suck, why cant people just offer low prices and great service. I really hate carrying around discount card this and that. I really miss the days of being asked if I found everything instead of for my shit discount card. What is stupider is these damn discount cards are not even needed to track shopping habbits. Damn retards running IT divisions of these companies.

Fri, 06/03/2011 - 02:28 | 1334965 RmcAZ

Would you like to sign up for the ZeroHedge Club Card?

Fri, 06/03/2011 - 01:38 | 1334930 alexwest

excuse me

#########
Q1 Revenue: $644 million, up from $44 million a year prior
Q1 cash flow: $6.978 million down from $12.0 million a year earlier
####

what fuck is that? do they count in 'Revenue' what customers buy/sell through companiny's service ?

how is it possible? its same way if EBAY would count customers sales as own revenues? or if Microsoft counted 'revenue' as revenue of each firm where Windows installed

???????
alx

Sat, 08/13/2011 - 06:17 | 1556807 juyitrade3