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(Bloomberg)   Wall St. holds another 20% off sale on Groupon   (bloomberg.com) divider line 12
    More: Fail, Groupon, Wall St, LivingSocial, nail salon, Chief Executive Officer Andrew Mason, Said, Edward, Edward Woo  
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1055 clicks; posted to Business » on 14 Aug 2012 at 7:19 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-08-14 07:38:55 AM
Dotcom bust 2.0 is progressing right on schedule
 
2012-08-14 07:40:05 AM
So what have we learned? When Goggle offers you 6 billion for your company you take the damn money!

Let see where Groupon stands today. Inital IPO worth 12billion @ $20/stock; by May it's at $6 billion trading @ $10. Today it's at 7.55 and falling, placing the value at 4.53 billion and there honestly ins't a bottom in sight given their failed business model and made-up accounting. Probably stick around a little longer but it doesn't take the magic 8 to see "outlook not so good."
 
2012-08-14 07:42:34 AM

harm dealer: Dotcom bust 2.0 is progressing right on schedule


At least it didn't get too far out of hand this time. Groupon, Facebook, linked in, etc. not as widespread as the first bubble. Maybe we're not quite as stupid as we thought we were.
 
2012-08-14 07:45:01 AM
Who'd have thought giving money away, along with negative press about how groupon solely exists to rip consumers and businesses off alike would mean a devastatingly bad balance sheet for them...
 
2012-08-14 07:51:55 AM

Debeo Summa Credo: At least it didn't get too far out of hand this time. Groupon, Facebook, linked in, etc. not as widespread as the first bubble.


Oh Lard. I remember watching CNBC and seeing them talk about companies whose stock price would double or triple on news that they added a '.com' to their name.
 
2012-08-14 10:09:47 AM

mauricecano: So what have we learned? When Goggle offers you 6 billion for your company you take the damn money!


Incorrect.

The IPO was a smashing success -- they sold the entire (small) pool of shares at the initial asking price, and resulted in an initial valuation 2-3x what Google offered. Groupon, and *more*importantly* (in that world) the initial big-money investors did just fine in the IPO. The VC money is on to the next thing (or the next yacht). Hell, if you really want to call it a failure, you could argue that they left money on the table, given that it broke $30 (iirc) and only sold ~5%, but how much of that early climbing room and scarcity were necessary to make sure the launch was successful is a fair question. We also don't know what terms came with the Google offer, so the IPO may well have resulted in cash-in-hand where the Google offer just handcuffed the execs and VCs for more calendar pages.

The real lessons here are two-fold:

1) Be very, VERY sure of what you're buying if you're foolish enough to attempt to buy IPO shares at retail. Remember that the people who know all the gory details are cashing out at this point, not investing.

1b) If you buy IPO shares at retail, be VERY sure you want to hang on to them, if they go up much in early activity.

2) If Google walks away from a deal after going through the prospect's dirty laundry, consider doing your best to short the stock within a few days of the launch.

/ "Groupon FAIL LOL!" is a pet peave
// now if only I had any money actually to invest in anything beyond ramen : (
 
2012-08-14 11:47:52 AM
Anybody paying 70 times earnings for a farking coupon company isn't intellectually gifted enough to be a greeter at Wal-Mart.

harm dealer: Dotcom bust 2.0 is progressing right on schedule


Fools and their money and all that.
 
2012-08-14 01:48:10 PM

harm dealer: Dotcom bust 2.0 is progressing right on schedule


So much this. How the hell don't people see it? In the late 1990s, it was glorified web designers coming up with a bazillion different ways of presenting the same fundamental web technology and claiming innovation. Today, it's "social media experts" coming up with a bazillion different ways of pushing data around social media and claiming innovation.

It's like Taco Bell. Mix the ingredients in as many ways as you like, but it's still the same ingredients and it's not impressing anyone.

Which is not to say no one is innovating. But 90% of the startups out there are based on bullshiat.
 
2012-08-14 02:23:45 PM
Anyone see the episode of "Million Dollar Match Maker" that had the super nerd Groupon millionaire?

I wonder if any of those hotties are calling him back now.
 
2012-08-14 03:17:07 PM
Yup, exactly as I predicted: once the economy picked up, nobody cared about saving $15 at a restaurant anymore.
 
2012-08-14 07:22:24 PM

MrEricSir: Yup, exactly as I predicted: once the economy picked up, nobody cared about saving $15 at a restaurant anymore.


The real problem with coupon companies is that businesses have realised that it doesn't work. They were sold the idea that customers would come back, and they realised that these are just cheapskates going from deal to deal.

Some types of discount businesses work: sites dealing with overstocks and empty hotel rooms. If it's Friday and a hotel has lots of empty rooms, they'll dump them on a hotel site at a fraction of the price. The hotel owner may only get a fraction of what they'd like, but it's better than nothing.

On top of that, this isn't an automated business. eBay and Google are software businesses. They can serve billions of customers with relatively small numbers of staff because the customer interaction is all done with software. Groupon and the coupon company I had an interview for did their deals with sales staff.

The best discount site I've recently seen is Hot UK Deals, which is basically a deal site. People post deals they find in shops or online, other people vote them up or down. It's managed by a couple of guys.
 
2012-08-14 08:26:27 PM
Groupon: 5.51, down 72% since IPO

RIMM: 7.56, down 69.22% in the last calendar year, down 89.03% from their all time high in '08

Facebook: 20.38, down 46.37% since IPO

Microsoft: 30.13, up 20.04% in the last calendar year, up 5% from 5 years ago, up 25% from 10 years ago

/bye-bye, web 2.0
 
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