Around the Net
Groupon IPO Valued Higher Than Google
- Bloomberg, Thursday, March 17, 2011 12:45 PM
To stay ahead of the group-buying fray, Groupon has reportedly held talks with several banks about an IPO valuing the company at a jaw-dropping $25 billion. Just 2-years-old, Groupon's IPO could happen this year, and is very unlikely to fetch under $15 billion, reports Bloomberg Businessweek, citing sources. "To give some perspective, Google was valued at $23 billion in its IPO, so that would make it a bigger IPO valuation than Google," notes Business Insider.
In the context of other hot, privately-held Web companies, The Wall Street Journal writes: "Unlike dot-com companies a decade ago ... the new crop of Web companies have attracted a large base of users and are generating revenue through online advertising and other means." Industry experts, however, express serious skepticism about the long-term prospects of group buying. Groupon and its kin are "being valued as though they are going to be the next Google or EBay or Amazon," Claire Enders, head of media consulting firm Enders Analysis, tells Bloomberg Businessweek. "But their business models may reach their limits a lot more quickly, or not work in as many markets."
Under the headline, "Is it a Tech Bubble Now? Groupon Talks $25 Billion Valuation," Deal Journal writes: "We know, we know. It's different this time around. But it sure feels like tech manic 1999 all over again." "To provide a few points of comparison: the current market caps of AOL, IAC, Netflix, and Yahoo are $2.0 billion, $2.6 billion, $11.3 billion, and $20.8 billion, respectively," writes WebProNews. "So Groupon's definitely setting its sights high." "Honestly, I don't get it," Marketing Pilgrim writes of Groupon's potential valuation. "What's either going on here is that Groupon is even bigger than most of us can grasp or this is simply the most incredible spin job in the history of business."
Seems like every time were hear a valuation for Groupon, it doubles! $25B is high but I wonder how much higher it can go. The group buying concept is going to be around for awhile – people (like myself!) love deals and that's not going to change. :)
I started LocalDealSites.com , a guide to over 130 Groupon-like daily deal websites and lets you filter by city so you can see which sites have offers in your area. http://www.localdealsites.com/
i don't forsee these giants to be stopped but i m also forseeing a threat to them by http://masterseek.com it provides quick and free access to, among other things, company profiles, contact information, and descriptions of products and services from more than 45 million companies in 75 countries.