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Groupon Could Challenge Google's Record IPO

Soulskill posted more than 3 years ago | from the until-the-coupon-bubble-collapses dept.

Businesses 245

jbrodkin writes "Months after spurning Google's $6 billion takeover bid, Groupon may topple Google's IPO record with an initial public offering worth $25 billion. Google went public in 2004 with a $24.6 billion valuation and Groupon seems to be on the verge of an IPO worth even more, Dow Jones VentureSource says. Even if Groupon doesn't break Google's record, it seems likely to become only the fifth venture-backed company to achieve a $10 billion valuation at the time of its IPO."

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245 comments

Groupon (4, Interesting)

viablos (2018696) | more than 3 years ago | (#35534698)

Groupon has a great business idea, AND it's mainly targeted to girls and women who also spend a lot for beauty things. They make shitloads of money as well as does the partner companies and their users. Win-win-win.

Re:Groupon (4, Insightful)

MetalliQaZ (539913) | more than 3 years ago | (#35534794)

Actually users SPEND money. When advertisers say that you "save" money by taking advantage of a deal, they are altering reality. Saving money is the opposite of buying.

Still, when used responsibly, it IS a win-win-win. I have used it to great effect.

-d

Re:Groupon (1)

cpu6502 (1960974) | more than 3 years ago | (#35535088)

>>>When advertisers say that you "save" money by taking advantage of a deal, they are altering reality.

If you are buying something you need, like money, and the advertiser gives you 50% off, then you are indeed saving money. Unfortunately most people buy things they don't need (shoes, that "cute dress", games, and other crap). Which is why the average American household is $120,000 in debt.

Plus another ~$140,000 national debt on top of it. The US is arguably the poorest first-world country - unable to repay what it owes.

Re:Groupon (2)

SomeJoel (1061138) | more than 3 years ago | (#35535304)

If you are buying something you need, like money, and the advertiser gives you 50% off, then you are indeed saving money.

That's true. I spend at least half my income on money. But I never buy it at a discount store, because the quality just isn't there.

Re:Groupon (1)

dadioflex (854298) | more than 3 years ago | (#35535604)

Tell it like it is, brother. I find that with money it pays to make your own, that way you know EXACTLY what goes into it.

Re:Groupon (1)

Surt (22457) | more than 3 years ago | (#35535464)

Do you have a source for that 120k in debt stat? I can't believe that could be true unless they are counting a mortgage against you without giving you credit for the value of the house.

Re:Groupon (0)

Anonymous Coward | more than 3 years ago | (#35535484)

If the debt is gone, it means the dollar purchases at least 14% more than it does currently.
You can do your part at this site [pay.gov].
That'd be equivalent of dropping gas prices to $2.83/gal from $3.30.

Until Congress is running a surplus, it's likely throwing good money after bad.
It is possible to open a foreign bank account with direct deposit.

Re:Groupon (1)

theBully (1056930) | more than 3 years ago | (#35535132)

When advertisers say that you "save" money by taking advantage of a deal, they are altering reality. Do you mean to say advertisers are not honest? I don't really need to spend money to save money? There's no free in "buy 4 get one free"? Well....well...this is...very distressing...I,...I,...need to rethink my whole life. All these years trying to save by taking on all the deals...

NO. It's impossible. Get you're facts straight. Next you'll tell us there's no Santa and no Easter Bunny and that we've evolved from some chemical mixture struck by lightning. Get real, wakeup!

Re:Groupon (1)

Firehed (942385) | more than 3 years ago | (#35535144)

Depends on your intentions. If you were going to buy it anyway at full price, then you are saving money - although obviously more in an opportunity cost sense than a savings account sense. If you wanted to buy it but weren't willing to pay the normal price, then you were just doing the free market thing. If you bought it simply because it was being sold at a discount, then I've got a piece of land in which you might be interested.

Re:Groupon (0)

Anonymous Coward | more than 3 years ago | (#35535260)

We regularly find promotions on pampers, but they tend to be short term. We bag as many as we can, because with three toddlers we will use them, sooner or later.

And in the meantime, he boxes serve as toys.

Re:Groupon (1)

Cyberllama (113628) | more than 3 years ago | (#35535150)

Occasionally they will have deals for things you would have bought anyways, and you end up paying less than you might have. It's still spending, but its a net savings, at least. The problem is, in that case, the business gains nothing. They aren't getting any new exposure or a customer out of it -- they're just basically giving a regular a discount for no real reason. This happens a lot and may be one of the reason why a large number of business that have offered Groupons have low satisfaction ratings with the whole experience. If I had money, I'd be shortselling the hell out of this stock -- but then again I wouldn't have bought Apple stock after they announced the iPod either, so what do I know?

Re:Groupon (1)

speroni (1258316) | more than 3 years ago | (#35535520)

True but if there are a number of providers for a single product. The seller who provides a discount through Groupon will win out over the competitors selling the same product.

Re:Groupon (1)

Kral_Blbec (1201285) | more than 3 years ago | (#35535270)

That brings up rule #1 about deal hunting. It's only a good deal if you were already planning on buying it sooner or later.

Re:Groupon (1)

Abstrackt (609015) | more than 3 years ago | (#35535296)

Saving money is the opposite of buying.

Um, no? Saving is the opposite of spending. If I was going to buy a product anyway any discount is money I get to keep. It only stops being savings when you buy something only because it's on sale.

Re:Groupon (0)

Anonymous Coward | more than 3 years ago | (#35535474)

Actually users SPEND money. When advertisers say that you "save" money by taking advantage of a deal, they are altering reality. Saving money is the opposite of buying.

I bet you and the vast majority of nerds reading this site didn't know the difference until you read this strip: http://xkcd.com/870/ [xkcd.com]

Morons.

Re:Groupon (1)

thedonger (1317951) | more than 3 years ago | (#35535584)

Still, when used responsibly, it IS a win-win-win.

If Groupon was only used responsibly their IPO would be worth - well, they probably wouldn't be worth an IPO.

I don't see them as a company who will change the internet (like Google or Facebook). I wish them luck, but I wonder why anyone would think they are a good long-term investment.

When someone offers you $6 billion dollars for your company you say 'yes!'

Re:Groupon (2, Interesting)

Anonymous Coward | more than 3 years ago | (#35534862)

According to the site, Groupon users have saved about $1.5 billion. With many offers being half price, Groupon's total turnover ever would also be about $1.5 billion. How is a company with a $1.5 billion all-time turnover worth $25 billion? Count me out.

Re:Groupon (2)

Cyberllama (113628) | more than 3 years ago | (#35535076)

I concur. I don't get this at all. I thought groupon was nuts not to take Google's offer, but this -- this is madness. They have a larger user base for sure, but their current business model does not support this valuation.

Re:Groupon (1)

Desler (1608317) | more than 3 years ago | (#35535286)

For the same reason that Facebook and Twitter are claimed to be worth billions of dollars? Because some idiot thinks they are worth that much and are willing to flush their money down the toilet. When the inevitable Web 2.0 crash happens it'll be great to laugh at all the paper "millionaires" who threw money at these businesses that produced nothing of value.

Re:Groupon (2)

garcia (6573) | more than 3 years ago | (#35534968)

I see them as targeting restaurants mainly and generally screwing those businesses over when they "advertise" for them.

Groupon exists to advertise for itself. Its userbase is loyal to Groupon, not the businesses advertised. When that userbase is exhausted (and it will be) it will become junk.

Re:Groupon (1)

h4rr4r (612664) | more than 3 years ago | (#35535148)

Screwing them over? How?

The restaurant uses them to sell X $25 off a $50 meal coupon basically. If the restaurant is dumb enough to not have this work out as a profit for them, they are going out of business no matter what groupon does. The groupon user base is not loyal to groupon, if they had a competitor these folks would use them just as much. Welcome to a functioning market. Buyers are rationally attempting to get the best deal they can, and sellers trying to guarantee minimum set of sales.

Re:Groupon (1)

Anonymous Coward | more than 3 years ago | (#35534978)

What is their moat? or sustainable competative advantage?

I use kijiji.ca (local classified site like craigslist) a lot, they now have daily deals.

They already have local traffic, and people searching for deals.
Since you specify which area they even know where you're looking for deals.
What does groupon offer that they or someone else can't or doesn't offer?

$25 Billion for a Mailing List?? (1)

bit trollent (824666) | more than 3 years ago | (#35535016)

Now matter how much the people on this mailing list spend, there is no way that it's worth $25 billion. It's just a spamish mailing list...

I guess the tech bubble is back. Good news for programmers, bad news for dumb investors.

Re:$25 Billion for a Mailing List?? (1)

haruchai (17472) | more than 3 years ago | (#35535066)

I don't think the bubble ever really went away; it just jumped to the next new, hot, sure thing. It'll only ever go away when people stop being stupid.

Re:$25 Billion for a Mailing List?? (1)

Mad Merlin (837387) | more than 3 years ago | (#35535456)

I don't think the bubble ever really went away; it just jumped to the next new, hot, sure thing. It'll only ever go away when people stop being stupid.

So what you're saying is that it'll never go away?

Re:$25 Billion for a Mailing List?? (1)

GameboyRMH (1153867) | more than 3 years ago | (#35535124)

I'm just sad that I missed out on the Social Media bubble :-(

I just want a decent bit of cash like the web boomers! At this rate if I have a rusty '91 Supra for a midlife-crisis-mobile, I'll be lucky...

Re:$25 Billion for a Mailing List?? (1)

bit trollent (824666) | more than 3 years ago | (#35535632)

I was actually working on a social media application similar to LinkedIn back when facebook wasn't even available in my college.

I got alot more experience than money out of that bubble.. I got to see paychecks bounce and a company crash and burn, in a pretty spectacular fashion.

It was sad to see, but most of the employees ended up landing on their feet.

Re:$25 Billion for a Mailing List?? (1)

Surt (22457) | more than 3 years ago | (#35535538)

The bubble is back for sure. Programmer salaries jumped 20% this year, almost universally.

Re:Groupon (1)

larry bagina (561269) | more than 3 years ago | (#35535074)

Users don't actually save unless it's something they were otherwise going to pay full price for.

Partners lose money. Example: $100 gift certificate sells for $50, groupon gets $25, they get $25.

Re:Groupon (1)

h4rr4r (612664) | more than 3 years ago | (#35535288)

You could not be more wrong.

Users save money when they purchase something they would have bought at full price otherwise. Partners get a guaranteed amount of money and they get it now, not later. They also get the opportunity to show their product or service to what may be a new customer. That $100 gift certificate for $50 normally comes as 4 $25 certificate that you can only use one at a time on something costing at least $50. This means if the retailer has more than a 100% markup they can still be making money. Another strategy that is often employed is that only some goods or services are available for the offer. This is common in restaurants, alcohol being what is often excluded.
Which for a fine dining restaurant can easily cost as much or more than the food.

Re:Groupon (1)

Kral_Blbec (1201285) | more than 3 years ago | (#35535324)

You're discounting two important factors
1)the value of having new customers come in. Make the first experience positive and they might return, making that gc loss a long term gain.
2)the high number of gcs that never get redeemed.

Re:Groupon (0)

GameboyRMH (1153867) | more than 3 years ago | (#35535226)

Makes sense you would say that, since Groupon is a Microsoft partner (through Bing deals) and you are a filthy Microsoft shill.

Re:Groupon (0)

Anonymous Coward | more than 3 years ago | (#35535532)

No I'm not. You're an idiot.

Re:Groupon (0)

Anonymous Coward | more than 3 years ago | (#35535302)

Said before, and worth saying again: Groupon is the wife that comes home with a $400 blouse and says "look how much money I saved".

Re:Groupon (1)

jcr (53032) | more than 3 years ago | (#35535368)

They make shitloads of money

Got any actual figures? A $25B market cap sounds awfully bubbly to me.

-jcr

Welcome to 1999 (3, Interesting)

Anonymous Coward | more than 3 years ago | (#35534702)

I bet the stock is at 5 bucks in 3 years.

Re:Welcome to 1999 (0)

viablos (2018696) | more than 3 years ago | (#35534786)

I bet the stock is at 5 bucks in 3 years.

Well do! You know you can also sell stocks that you do not really own, in case you're predicting the stock will fall. Make your millions if you really believe in that.

Re:Welcome to 1999 (4, Insightful)

MetalliQaZ (539913) | more than 3 years ago | (#35534820)

I wouldn't write Groupon off as a bubble stock. They actually make money, which means they can be legitimately valued. The hysteria in 1999 was in companies that had no proven revenue stream whatsoever.

Re:Welcome to 1999 (1)

The Clockwork Troll (655321) | more than 3 years ago | (#35535168)

There were at least two hysterias in 1999.

1) Companies with no proven revenue stream.

2) More insidiously, companies that were going to make tons of money from advertising, and sold banner ads at huge CPMs, because there was no accountability for conversion performance.

This feels a lot like #2, except it's not just bullshit conversion performance (which here could be interpreted as repeat visits), it's also pre-inflation of retail price to give the appearance of "value" where really there is none. Groupon's sales reps themselves advise merchants to "temporarily" double the retail price of their goods so they can offer 50% "discounts".

In short, bubble.

Re:Welcome to 1999 (1)

Desler (1608317) | more than 3 years ago | (#35535350)

They actually make money, which means they can be legitimately valued.

They may have revenue at something like $700 million in revenue but according to reports about the company they make very little profit. Nothing that seems to warrant a $25 billion IPO.

Re:Welcome to 1999 (4, Interesting)

Surt (22457) | more than 3 years ago | (#35535606)

The pricing is bubble, though. They're getting valued at 20X gross. That's a factor of 5 off normal.

Wait (1)

Even on Slashdot FOE (1870208) | more than 3 years ago | (#35534706)

How is this company even worth $12 billion? Seriously, even first post at half off coupons aren't worth that.

Re:Wait (2)

WrongSizeGlass (838941) | more than 3 years ago | (#35535166)

How is this company even worth $12 billion? Seriously, even first post at half off coupons aren't worth that.

It's not worth the money. We'll just have to wait for a Groupon link to the 'IPO Deal' where we can get 10 shares for the price of 4 if we buy them the day after tomorrow.

Trying to Blow Up a New Bubble (5, Insightful)

MarkvW (1037596) | more than 3 years ago | (#35534784)

Wall St. can't keep itself from trying to blow up investment bubbles.
There's a sucker born every minute (and then the taxpayers bail the investment banks out).

Re:Trying to Blow Up a New Bubble (0)

cpu6502 (1960974) | more than 3 years ago | (#35535164)

>>>then the taxpayers bail the investment banks out

Guess you should have listened to Ron Paul and his Republican "liberty" caucus. They all voted "nay" to the $700 billion banker bailout bill, and it went down in flames. Mr. Paul said the banks, especially the investment ones like AIG, should be allowed to fail so we could rebuild the economy on their broken bones.

But then the Democrats revived the Banker Bailout Bill, bribed the republicans with pork for their districts, and it passed ~10 days later. :-( Frickin' fraggin' mumble.... grrrr! I tried to vote-out my representative for that idiocy, but alas he's still there.

Ron Paul for President in 2016.

Re:Trying to Blow Up a New Bubble (1)

MarkvW (1037596) | more than 3 years ago | (#35535614)

I've listened to Rand Paul. He actually believes that the marketplace should be completely left alone. Leaving Wall Street alone is a terrifying idea.

Re:Trying to Blow Up a New Bubble (1)

demonbug (309515) | more than 3 years ago | (#35535642)

>>>then the taxpayers bail the investment banks out

Guess you should have listened to Ron Paul and his Republican "liberty" caucus. They all voted "nay" to the $700 billion banker bailout bill, and it went down in flames. Mr. Paul said the banks, especially the investment ones like AIG, should be allowed to fail so we could rebuild the economy on their broken bones.

But then the Democrats revived the Banker Bailout Bill, bribed the republicans with pork for their districts, and it passed ~10 days later. :-( Frickin' fraggin' mumble.... grrrr! I tried to vote-out my representative for that idiocy, but alas he's still there.

Ron Paul for President in 2016.

The problem here is that the bubble was already blown up. Refusing to bail out those companies, as undeserving as they were, would have lead to much bigger problems. The solution isn't to cut your own neck just to punish the wrongdoers, it is to prevent the situation from arising in the first place. Once you are in that situation, there are no good options.

Re:Trying to Blow Up a New Bubble (1)

Surt (22457) | more than 3 years ago | (#35535644)

If only I could get those people without any of the associated crazy that goes with them. Gold standard. Good god.

Can someone explain the appeal here? (2)

gad_zuki! (70830) | more than 3 years ago | (#35534788)

I see a lot of useless coupons and services when I visit. Some "coupons" require me to buy in. Compared to deal sites like Woot or dealcatcher, I'm not seeing the allure. Typically, most of the "deals" are things like salons and jewerly/makeup which makes me think this is mostly a service for women.

Re:Can someone explain the appeal here? (3, Informative)

oh-dark-thirty (1648133) | more than 3 years ago | (#35534884)

There are also a good number of restaurant coupons, at least in my area. I've used a couple and have been very pleased. If I like the place I'll be back, otherwise I'm not out the full boat for trying it.

Re:Can someone explain the appeal here? (0)

Anonymous Coward | more than 3 years ago | (#35534918)

Media hype. They want another dot bomb. This is it.

Re:Can someone explain the appeal here? (2, Insightful)

Anonymous Coward | more than 3 years ago | (#35535122)

You really don't understand it then.

All of the coupons require you to buy in. They aren't coupons at all but rather reduced price gift certificates (with short expiration dates).

They probably make good money on non-redemptions too.

They have some really stellar deals (2)

Sycraft-fu (314770) | more than 3 years ago | (#35535186)

Now if it is on stuff that doesn't interest you, well then don't bother. Can't say I use it much myself. However the point is that if you see a deal you like, you buy in. You then get a large reduction in the cost, often 50%. That can be very worth it.

Re:Can someone explain the appeal here? (1)

Anonymous Coward | more than 3 years ago | (#35535190)

As someone who paid $15 for a $30 gift certificate to a liquor store... I'm happy.

Re:Can someone explain the appeal here? (0)

Anonymous Coward | more than 3 years ago | (#35535192)

"which makes me think this is mostly a service for women."

Which makes ME think this really doesn't belong on slashdot!

Re:Can someone explain the appeal here? (1)

cpu6502 (1960974) | more than 3 years ago | (#35535256)

The best deals are on amazon and ebay:

AMAZON:
- Put the item in your shopping cart. Visit the site every few days, and you'll see it say, "This item's price has dropped". If it's a good deal, buy it.

Example: I got SG1 Complete for only $110.... about half what it would normally cost. Orville Redenbacher popcorn for $15/case or ~40 cents per bag. Nature Valley Granola Bars for 16 cents each. Sony HD Radio for $75.

EBAY, Amazon's Private Market
- Most of the sellers advertise stuff as "new" when it's actually damaged/used goods. You can take advantage of that fact by asking for a 50% refund (item not as described). I rarely spend more than $5. Of course if the seller is honest and the game actually IS new, you still get a good deal.

Re:Can someone explain the appeal here? (0)

Anonymous Coward | more than 3 years ago | (#35535356)

For Amazon, you can use www.camelcamelcamel.com to email you when a specific Amazon product has reached your targeted price.

havent used a single coupon from groupon ever ! (1)

Anonymous Coward | more than 3 years ago | (#35534814)

Havent used a single coupon from groupon ever and not anyone I know ! How the hell do they manage to IPO this ???????

Re:havent used a single coupon from groupon ever ! (1)

SnowHog (1944314) | more than 3 years ago | (#35535054)

Count me amongst those who don't know a single person who has ever used Groupon.

Re:havent used a single coupon from groupon ever ! (1)

BlueWaterBaboonFarm (1610709) | more than 3 years ago | (#35535230)

This is surprising to me.
I would guess that more than half of my friends have heard of groupon and at least 10% have used it. At least a few of my friends check it everyday.

Re:havent used a single coupon from groupon ever ! (1)

mbourgon (186257) | more than 3 years ago | (#35535370)

Because you are not everyone. Everyone, conversely, does not act in exact concordance with your behavior.

See: Apple, Microsoft, Linux.

Definitely a buy (1)

Anonymous Coward | more than 3 years ago | (#35534902)

I purchased my VA Linux shares for $239 a piece and haven't regretted it since. Who needs money, anyway!

How is it worth anything? (5, Insightful)

Anonymous Coward | more than 3 years ago | (#35534926)

Groupon makes a lot of money. Groupon also has a massive amount of debt. They secured about a billion dollars in funding during a recent 'investment round'.

We are talking about a billion dollars in funding to run a website that requires no novel technology, has no valuable intellectual property, and doesn't have much of a competitive advantage. There isn't anything stopping other companies and people from creating more Groupon clones (as is obviously evidenced by competitors like LivingSocial and Google's upcoming daily deals site).

The VCs must be really desperate for a success story, considering all the 'most innovative companies' coming out of silicon valley have no business model. They want to make money off of one of the pseudo-profitable organizations while they can. Welcome to doctom bubble 2.0.

Re:How is it worth anything? (1)

Yvan256 (722131) | more than 3 years ago | (#35534986)

Wasn't Bubble 2.0 in 2005? I thought this one was supposed to be called Cloud Bubble!

Re:How is it worth anything? (0)

Anonymous Coward | more than 3 years ago | (#35535206)

It's not that -- you must remember two things:

1) Money is cheap right now. Stupidly cheap. As an institutional investor, such as those who buy large tracks of stock at IPOs, it's seen as foolish to not take advantage of that situation. This leads to the second point.

2) There's no real risk involved. Between tax write offs for failed business ventures and bailouts funded by major government debt there's no reason to the market. The people putting forth the numbers here don't care that'll never produce anything like that of actual value to anyone. Nothing will come back to haunt them in the short, medium, or long term.

Re:How is it worth anything? (0)

Anonymous Coward | more than 3 years ago | (#35535374)

There isn't anything stopping other companies and people from creating more Groupon clones (as is obviously evidenced by competitors like LivingSocial and Google's upcoming daily deals site).

That's been said of Twitter, Facebook, PayPal as well.
Google's been eying to -buy- Twitter, rather than try it themselves. Their social networking test failed. I have no idea how Google Checkout is doing, but seeing as I almost never see a button for paying through Google Checkout, it's far from thrusting PayPal off its throne.

Let alone that other companies are doing well in launching alternatives, despite that it's technologically not very difficult to duplicate them.

In part this is because the aforementioned sites already have mass and momentum working for them.

Even in NL where Hyves - a Dutch service - has reigned over Facebook, its decline in favor of Facebook is palpable. Why? Because that's where all their friends from the U.S., Canada, etc. are who are far less likely to sign up for a Hyves account.

Re:How is it worth anything? (1)

jcr (53032) | more than 3 years ago | (#35535488)

requires no novel technology, has no valuable intellectual property, and doesn't have much of a competitive advantage.

They do have quite a mindshare advantage, though. Your description above would apply just as well to e-bay, wouldn't it?

-jcr

Re:How is it worth anything? (1)

Anonymous Coward | more than 3 years ago | (#35535674)

We are talking about a billion dollars in funding to run a website

I love how people simplify things on Slashdot. It's not JUST about the technology. What about all the Groupon sales and marketing people? This is a site which provides a marketing service to different consumer industries across the nation. And, they apparently have been quite effective at it. Sure, anyone can reproduce the technology they are implementing, but there is so much more to their success than the technology.

Off topic-ish (3, Interesting)

Anrego (830717) | more than 3 years ago | (#35534932)

Am I the only one, or do all the groupon advertisements put anyone else off?

I love the concept of groupon it’s really quite brilliant but for some reason all their ads and even their name totally puts me off. They feature food I like, but it doesn’t look appetising for some reason I can’t put my finger on. Also phrasing like “hot dang” appears to have a negative effect on me.

This isn’t meant to be a troll or anything, I’m legitimately curious. I know I'm not the coupon type, but it seems weird that they put me off so completely.

Re:Off topic-ish (0)

Anonymous Coward | more than 3 years ago | (#35535112)

Things the name Groupon reminds me of:
Groping, Goopy, Gross tampon, Group strap-on, Grey Scrotum.

I've never even heard of the service, but you're right, the name is psychologically off-putting.

Re:Off topic-ish (1)

smelch (1988698) | more than 3 years ago | (#35535204)

I'm also in the same boat. I don't use many coupons to begin with but I am kind of starting to hate the website. I think its because it stinks of Facebook. Way overvalued, way too easy to implement, and when there is a small shift in the internet or culture (which happens only constantly) they will find themselves unable to pay back their investors. So I try to pretend the website and the bubble aren't happening, but when they stuff ads in your face its kind of hard.

At least Facebook has something unique in their critical mass and have done a good job integrating themselves with everything else. They're still way overvalued and people seem to think it will always be here.

Re:Off topic-ish (1)

retchdog (1319261) | more than 3 years ago | (#35535554)

their schtick is annoying but totally ignorable. i get their emails into a designated folder and daily just scan it (by eye) for businesses i would have gone to anyway (the business names are always in the subject line without any of their "clever" flavor text); if so, click and print. i make a groupon transaction maybe once every three months. i guess i'm not saving very much, but it is fun to get clothes or good food for half-off.

Re:Off topic-ish (0)

Anonymous Coward | more than 3 years ago | (#35535616)

your answer?
because they're actually peddling shit. sure, i love spa treatment, and I'm not even a girl (girlyman, at best).
do you know the treatment you get, when you walk into a spa, and show them a coupon that claims "i'm here paying half price"?
i've used groupon a few times, and i never will again. restaurant deals i've purchased have had fine-print preventing any real value, and the spa deals i've gotten have been the worst service imaginable.
companies desperate for ANY money during this slump economy will begrudgingly accept 25% from Groupon, up-front, but then are loathe to pony-up when the buyer shows up to claim his/her 100% service.

f* this company. i hope it IPOs bigger than google's wildest wet dreams.
i'm shorting every share i can afford, and waiting until their NEW client base is exhausted, and people realize there ARE NO repeat clients.
POP.

love,
-benny

This is what we value in this country (5, Interesting)

cosm (1072588) | more than 3 years ago | (#35534948)

This is what we value in this country. Companies that spam coupons for the masses to buy more shit they don't need. So Wall St. intends on pumping 25 billion into a company that doesn't actually even manufacturer anything. A company whose only value is that it offers discounts to other companies! So in ten years, is their going to be a gang-groupon.com, that groupon pays to send out links to its own coupon links? The service based slave wage economy of the future is going to be quite sad indeed.

Re:This is what we value in this country (1)

neoform (551705) | more than 3 years ago | (#35535032)

>So Wall St. intends on pumping 25 billion into a company that doesn't actually even manufacturer anything.

I'm not in any way suggesting that Groupon is worth $25B, but Google doesn't manufacture anything and it's worth a lot of money.

Re:This is what we value in this country (0)

Anonymous Coward | more than 3 years ago | (#35535094)

Yes. they do. They manufacture software.

Re:This is what we value in this country (0)

Anonymous Coward | more than 3 years ago | (#35535336)

I can't touch bits, so they must not be worth anything...

Seriously, Google pounds out almost as much software as Microsoft. Who doesn't manufacture anything either, apparently.

Re:This is what we value in this country (0)

Anonymous Coward | more than 3 years ago | (#35535410)

So... what exactly is your point?

SOUNDS GAY-ISH !! (0)

Anonymous Coward | more than 3 years ago | (#35534998)

Hey boys, let's go get a GROUPON !!

Is there a groupon for this? (1)

shadowrat (1069614) | more than 3 years ago | (#35535008)

I bet we could get a good deal! Anyone want to go in on a groupon to buy groupon stock?

Bubble, bubble... (1)

poorbot (1569987) | more than 3 years ago | (#35535034)

This doesn't make social media seem like an economic bubble at ALL... I'm waiting for the book titled "Why the Social Media Bubble Will Never Burst" which will backed up by profound reasonings like: "It won't burst because there's so many people out there!"

Re:Bubble, bubble... (1)

smelch (1988698) | more than 3 years ago | (#35535480)

This reminds me of when a friend of mine got involved in a pyramid scheme and was trying to recruit underlings to push him up. I decided I wanted to try to talk some sense in to him so I "set up a meeting". He literally tried to tell me that the money he was making wasn't coming from screwing over people at the bottom because more people are born all the time, so everybody could keep moving up. "But you don't make anything, all you do is try to get people to stop making stuff and buy stuff." "But only the stuff you would buy otherwise, just buy it from here and make money doing it!" "But don't you see that isn't sustainable? People need to make that stuff and they're the ones paying you. They're never going to pay out more than they're taking in, and they have to pay for the manufacturing of the products and all the people who get a cut of your sales!".... Anyway the point is, that guy had a hot wife.

Second bubble (0)

Anonymous Coward | more than 3 years ago | (#35535036)

Early signs of second IT bubble?

Today's Groupon (1)

snsh (968808) | more than 3 years ago | (#35535102)

Receive $25 billion worth of Groupon.com valuation for $5 billion.* (* groupon must be redeemed on or before March 10, 2000)

Groupon stock will be sold on Groupon (0)

Anonymous Coward | more than 3 years ago | (#35535142)

"Buy today, and get 5 shares for the price of 1!"

824 groups on 'scary' list, what's next? (-1)

Anonymous Coward | more than 3 years ago | (#35535170)

no mention of the ever mathematically life0cidal GeorgiaStoneMasons? or, their contemporaries; the genetically, surgically, chemically & spiritually altered corepirate nazi mutants, eugenatics, weapons peddlers, hired goons, money changers, etc..

Actual valuation (1)

tekrat (242117) | more than 3 years ago | (#35535198)

Ever read the fine print on coupons? It says "Cash value 1/20 of a cent" So... Anyone care to do the math on how many Groupons need to be cashed in before the company is actually worth 25 Billion Dollars?

I think that's 2 Trillion Groupons. Which means that every person on earth would have to cash in 333 Groupons each.

Gee if I had money (0)

Anonymous Coward | more than 3 years ago | (#35535366)

I'd short the stock 3 weeks after the IPO. This looks like a Wall street 'pump it up then dump it' classic.

fake weather industry losing support (0)

Anonymous Coward | more than 3 years ago | (#35535430)

although it 'looks' ok once in a while. the babys, grownups & animals are having reactions to those chemicals too. flimsy? discounts probably won't help now as the product, & the co. remain largely invisible to us. maybe a coupon campaign? ipo? some recognition?

Opt in spam! (1)

lazn (202878) | more than 3 years ago | (#35535548)

can't wait till people realize this is just opt in spam and go ahead an start opting out of it.

I tried it for a bit, it was the most annoying thing imaginable.

Inflation adjusted value (1)

dave562 (969951) | more than 3 years ago | (#35535620)

Inflation has been going crazy. Google IPO'd before the market crashed and the government printed hundreds of billions of dollars. How much is Groupon's IPO worth in Google IPO era dollars?

This article reminds me of the dumb metric that comes out every holiday seasons. "Shoppers spent more this season than they did last season." No shit Sherlock?! Everything was more expensive this season than last season. They might as well say, "Shoppers spent more money on gas getting to the mall this holiday season than they did last year."

Hello, next internet bubble. (0)

Anonymous Coward | more than 3 years ago | (#35535664)

We've been waiting impatiently for you.

Discounts and the economy (1)

Anonymous Coward | more than 3 years ago | (#35535678)

Rock-Bottom Prices! How our new lowball culture is hurting the recovery.
http://www.newsweek.com/2010/09/13/how-our-quest-for-bargains-could-hurt-the-economy.html [newsweek.com]

The searing experience of the 2008–09 recession has also conditioned consumers at large to seek discounts. Americans have always loved bargains, but today they require them. Coupons have morphed from a hobby of retirees to a technologically enabled form of social media. Since its launch in November 2008, Chicago-based Groupon has become a phenomenon. It sends out a daily e-mail blast to people in specific cities, offering a huge discount on teeth-whitening, or pizza, or jeans from a specific vendor—but only if a certain number of your peers commit to buying at the low price. “This is a way of introducing e-commerce to local and small businesses,” says Andrew Mason, founder and CEO of Groupon. Mason notes that local businesses had traditionally looked down on coupons and discounting because they didn’t attract the upscale, repeat customers they desired. But Groupon has tapped into the new lowballing tendencies of yuppies. “The demographic we attract is one businesses want to reach: 21 to 35 years old, 70 percent female, making good money,” says Mason. (Groupon splits the revenues from sales with vendors who sign up.)

Whether you’re an executive at Mott’s or a fashionista in Chicago seeking a deal on jeans, lowballing makes economic sense. It’s good for balance sheets, and the fact that people are being more cautious about what they pay for goods and services is a welcome reaction. But systematic lowballing has broad implications. The economist John Maynard Keynes identified the “paradox of thrift”—if everybody saves, everybody gets poorer, since a rise in savings tends to dry up demand. By the same token, there may be a paradox of lowballing. If everybody lowballs and steadfastly refuses to pay existing prices as part of an effort to improve their financial standing, then everybody will suffer.

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