Groupon

[filsdepac]

Anyone use this regularly? I've bought a dozen or so and find it pretty useful. They're probably gonna be purchased by Google for close to $6 BILLION...and they were started 25 months ago! Unreal.

I think it's a great concept, but I feel like Google is overpaying. Are there any barriers of entry to this? I've already seen a few copycats. 99% of that price will be goodwill/customer relationships and similar criticisms were made about the YouTube price, but I think that's different.

For those that don't know, Groupon provides a daily coupon in most cities whereby you pay upfront. For example, you buy a coupon that is $10 for $20 worth of pizza at a local pizza joint. Groupon then collects 30-50% of the $10, while the pizza place gets the rest.

[Hot Lunch]

Anyone use this regularly? I've bought a dozen or so and find it pretty useful. They're probably gonna be purchased by Google for close to $6 BILLION...and they were started 25 months ago! Unreal.

I think it's a great concept, but I feel like Google is overpaying. Are there any barriers of entry to this? I've already seen a few copycats. 99% of that price will be goodwill/customer relationships and similar criticisms were made about the YouTube price, but I think that's different.

For those that don't know, Groupon provides a daily coupon in most cities whereby you pay upfront. For example, you buy a coupon that is $10 for $20 worth of pizza at a local pizza joint. Groupon then collects 30-50% of the $10, while the pizza place gets the rest.

That is a pretty step price that google will be paying. I thought I read a couple of days ago that it was 2.5 billion. Either way, a lot of money.

I buy something from groupon about once a month.

[Sizzle]

Anyone use this regularly? I've bought a dozen or so and find it pretty useful. They're probably gonna be purchased by Google for close to $6 BILLION...and they were started 25 months ago! Unreal.

I think it's a great concept, but I feel like Google is overpaying. Are there any barriers of entry to this? I've already seen a few copycats. 99% of that price will be goodwill/customer relationships and similar criticisms were made about the YouTube price, but I think that's different.

For those that don't know, Groupon provides a daily coupon in most cities whereby you pay upfront. For example, you buy a coupon that is $10 for $20 worth of pizza at a local pizza joint. Groupon then collects 30-50% of the $10, while the pizza place gets the rest.

Yes I've bought a few things. $25 worth of meats from Schneiders Deli and $50 worth of water sports gear at Marine Products for $20 (I bought two of the last one).

$6 billion seems like a lot. I know KSL launched their Deals page and it has done really well. Like you said, it seems fairly easy to pull off and I can see copycats popping up elsewhere. It is amazing how the Internet has completely revolutionized society in the last 20 years.

[Commando]

I got the $50 coupon to Nordstrom Rack for $25 and got some socks and a running jacket. Pretty sick man.

[cougjunkie]

Citydeals.com is very similar and I buy from them all the time. Mainly I buy deals for golf courses.

You can usually get $40 gift certificates for $10-15. Which is basically 18 and a cart.

[Surfah]

I've bought one thing off Groupon and it was 6 movie tickets for $30. The company who offered stopped honoring the tickets before I even used one. Groupon refunded everyone their money back even if you were able to use your tickets.

I signed up for the golf deals, but I have only seen one at a course I play and I get a better deal with a Tee Time Pass I purchase every year. I am ready to unsubscribe because I am sick of the emails.

[filsdepac]

That is a pretty step price that google will be paying. I thought I read a couple of days ago that it was 2.5 billion. Either way, a lot of money.

I buy something from groupon about once a month.

There have been rumors of a price between $2.5 and $6 billion (saw 6 at PE hub). Like you point out, a ton for a 2 year old company.

Although I still think it's high, I've read Groupon wants them basically because of their mailing list, which consists of 33 million people. Through groupon, they can monitor buying habits and determine what trends are out there. Google will be Big Brother.

[Hot Lunch]

There have been rumors of a price between $2.5 and $6 billion (saw 6 at PE hub). Like you point out, a ton for a 2 year old company.

Although I still think it's high, I've read Groupon wants them basically because of their mailing list, which consists of 33 million people. Through groupon, they can monitor buying habits and determine what trends are out there. Google will be Big Brother.

It is amazing what Google is doing and the moves they are making. My company keeps a close eye on Google and we get frequent updates on things that come up. We compete with them in regards to a couple of their tools that they provide, then we were acquired over a year ago and the company that bought us partners with Google on a number of things.

[filsdepac]

Groupon rejects offer: http://www.pehub.com/89844/groupon-r...-offer-report/

Wow.

[TripletDaddy]

Groupon rejects offer: http://www.pehub.com/89844/groupon-r...-offer-report/

Wow.

probably was an all-stock deal with a long vesting tail. I would look for an IPO in the next year or so.

I hope they are around for awhile because I just downloaded the groupon app and havent even used it yet.

[filsdepac]

probably was an all-stock deal with a long vesting tail. I would look for an IPO in the next year or so.

I hope they are around for awhile because I just downloaded the groupon app and havent even used it yet.

I'd hope so, hope they're not greedy like Yahoo, that didn't work out too well.

I got the app too, can't wait for my facial at Burke Williams.

[Katy Lied]

Groupon is nuts. Their stock will never be higher. By the time they IPO, their competitors (City Deals and local newspapers like KSL Daily Deals) will close in on their target market. They have no protection against competitors running with their concept. I've noticed that local copycat companies tend to have better deals, because they have local ties to businesses that everyone likes. The nordstrom rack cards are few and far between. Lately, most groupons are for carwashes and pedicures.

[TripletDaddy]

Groupon is nuts. Their stock will never be higher. By the time they IPO, their competitors (City Deals and local newspapers like KSL Daily Deals) will close in on their target market. They have no protection against competitors running with their concept. I've noticed that local copycat companies tend to have better deals, because they have local ties to businesses that everyone likes. The nordstrom rack cards are few and far between. Lately, most groupons are for carwashes and pedicures.

this is actually probably why they held out. The google offering was likely all stock meaning that they could get cash out quicker through an IPO next year. It will be less than the google offering but it will be real cash.

Of course, they are also gambling that the full value of the google stock will wind up being less than its current value when it fully vests in around 4 years.

This decision was all private equity, likely very little Groupon itself calling this shot.

[Surfah]

Groupon is a joke. And the deals in DC suck. I have bought two things in the past year and they were $15 greens fees to a local course. Even worse is I signed up for Living Social for a similar greens fee deal and their coupons are garbage.



http://www.forbes.com/sites/joanlapp...timate-put-on/

Funny site I came across spoofing their IPO:

http://runningshoes.com/groupon-ipo

[TripletDaddy]

Groupon is nuts. Their stock will never be higher. By the time they IPO, their competitors (City Deals and local newspapers like KSL Daily Deals) will close in on their target market. They have no protection against competitors running with their concept. I've noticed that local copycat companies tend to have better deals, because they have local ties to businesses that everyone likes. The nordstrom rack cards are few and far between. Lately, most groupons are for carwashes and pedicures.

So much for City Deals. Lawsuits right and left.