back to article Groupon drops $500m in piggy bank, eyes world hungrily

Groupon confirmed yesterday that it has already raised more than half of the $950m it is seeking in a monster equity funding round. The Chicago-based ecommerce coupon website, which recently shunned a $6bn takeover plan from Google, said in a US Securities and Exchange Commission filing on Thursday that it had cobbled together …

COMMENTS

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  1. Anonymous Coward
    Coat

    Lunch?

    No such thing as a free lunch.

  2. Flybert
    WTF?

    checked out ..

    .. Groupon after reading of the Goozilla's offer

    The 'Inland Empire' / San Bernardino / Riverside California region, is offered a single coupon a day of some odd luxury service like a 'Brazillian Hair Styling" regularly $125 for $75 .. WTF?

    This is worth $6 Billion ?

  3. Richard 15
    FAIL

    Suckers

    Anyone who buys into this will get burned in the end.

    Ultimately the threshold for this business is very low and

    can be easily undercut.

    So, at a minimum, their profits are likely to drop like crazy.

    In the end, there will still exist a niche for this, but it will have

    to not be quite as greedy since repeat customers for groupon

    are, to my understanding, quite low since they tend to cannibalize

    their own business to temporarily get a surge of business.

    The repeat customers at full price do not seem to surface and the

    longer term customers learn of the discount and want in on the

    deals, thus really hurting the bottom line.

    There are some more detailed analysis's out there, but Google

    really dodged a bullet. This would have been the biggest waste

    purchase since the geocities fiasco years ago.

  4. Xerxes
    WTF?

    sounds fishy

    "the majority of the funds raised would be used to buy back shares from investors"

    Isn't this the way pyramid schemes begin... pay off early investors with the money from late investors, rinse, repeat...

    I'd avoid this if I were me...

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