The Wall Street Journal today reported that Groupon is moving forward with its IPO, albeit at a reduced valuation to what had been previously expected. Here's the link (behind firewall): http://online.wsj.com/article/SB10001424052970204618704576641500783767700.html?KEYWORDS=groupon
Based upon my prior posts about IPOs, the reduced valuation comes as no surprise to me, for a few reasons. First, the stock market has been volatile lately, which typically has a negative impact on valuations. Second, Groupon has had a couple well-publicized problems with the SEC - the restatement of revenue, the controversy over its unique accounting metric, and the leaked employee memo - which have generated negative press. Third, the company's business model has also been under scrutiny.
It will be interesting to watch how the IPO does...
Based upon my prior posts about IPOs, the reduced valuation comes as no surprise to me, for a few reasons. First, the stock market has been volatile lately, which typically has a negative impact on valuations. Second, Groupon has had a couple well-publicized problems with the SEC - the restatement of revenue, the controversy over its unique accounting metric, and the leaked employee memo - which have generated negative press. Third, the company's business model has also been under scrutiny.
It will be interesting to watch how the IPO does...
