3 ms·

Could someone please explain to me how Groupon could possibly be worth $2 billion?? They aren't fully "mainstream" yet, and there service can easily be redevelo

• uvince 16y ago
  If Groupon can really make $400 Million in sales this year at 50%+ margins on the deal then they could be worth quite a bit on the surface. However, with recent acquisitions and other costs, I would expect their expenses to be through the roof. Problems: -500 Employees is a lot of overhead. -Acquisitions are spendy, too, and add more overhead. -When businesses wise-up they are either going to have only Gap deals left or have to significantly lower their margins in order to drive real value to the merchant. Not every mom & pop business is going to fall for this "we sell it for $10 and give you nothing sales pitch." I'm impressed with what Groupon has built, but the valuation seems inflated for a company that has so many vowels in its spelling.