Groupon IPO Reportedly Fetches $700 Million

Paul Lilly

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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