Groupon IPO Reportedly Fetches $700 Million
Groupon IPO Reportedly Fetches $700 Million
Posted 11/04/2011 at 6:43am
| by Paul Lilly
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Back in 2010, Google made Groupon an offer it was able to refuse. The sultan of search reportedly was willing to pay $5 billion for the online coupon site, and all Groupon's founders had to do was sign the paperwork, cash out, and laugh all the way to the bank. Imagine the audacity of rejecting a multi-billion dollar offer, because that's exactly what Groupon did and you know what? It may have been the right move.
It's hard to imagine that a $5 billion offer could be considered a lowball, but check this out. According to the San Francisco Chronicle's unnamed source "with knowledge of the situation", Groupon raised $700 million in its initial public offering. That's almost a third -- 30 percent -- more than what Groupon had in mind, and it values the company at $12.7 billion, more than twice what Google offered.
Groupon reportedly sold 35 million shares valued at $20 each, and originally the online coupon site was offering those shares for $16 to $18 each. The shares will begin trading tomorrow on Nasdaq under GRPN.
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nesrinamb
November 06, 2011 at 2:04pm
Well in the when it was much smaller it was still making a profit, whether or not it will again is a whole different story. time will tell whether or not it can survive.
d3v
November 06, 2011 at 12:24pm
They are loosing $300 million a year so they will burn through the money they just raised within 2 years. Groupon is just a scam to defraud investors.
Keith E. Whisman
November 05, 2011 at 1:49pm
.20cents a share this time next year if Groupon still exists.
yu119995
November 04, 2011 at 12:52pm
Wait a minute. Didn't Google offer to buy them out for $6 billion last year? They refused it too the morons.
Trooper_One
November 04, 2011 at 12:39pm
Is Groupon seriously going to generate 12.7 Billion dollars over its lifetime?!?
wolfing
November 04, 2011 at 8:05am
just give it time. Man initial IPOs start high, but then drop like rocks.
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