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The defensibility part is what raises red flags for me, I wonder why Groupon would sell right now when they seem to be on a twitter or facebook style trajectory
by mikeryan 16y ago
The defensibility part is what raises red flags for me, I wonder why Groupon would sell right now when they seem to be on a twitter or facebook style trajectory. It would seem like even the board of Groupon may see some real risk in their ability to maintain market share so might see now as the right time to exit.
- bryanh 16y agoMy uneducated guess: they see more stats that show most business owners aren't too keen on the service, especially AFTER they give it a chance. Even services with a seemingly big trajectory can fail due to these sorts of a customer retention problems.
- jdp23 16y agoExactly. Project out GroupOn's likely future and selling out quickly starts to look very attractive to their investors.