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I think that selling at a $6B valuation makes complete sense. It seems to me that if 40-50% off coupons were the magic key to retail success, they'd have been
by grandalf 16y ago
I think that selling at a $6B valuation makes complete sense.
It seems to me that if 40-50% off coupons were the magic key to retail success, they'd have been discovered by retailers already.
Groupon's coupons have already been getting worse... more of the "Get $50 worth of x for $25" which is not all that compelling if the overall purchase will be $100+.
Groupon has done a brilliant job of marketing, but I don't think it's sustainable as is. Groupon clearly has a superb sales team and genius marketing, but if I were an investor I'd want to cash out now, even at a $1B valuation.
- AtTheLast 16y agoI think it makes a lot of sense as an investor to cash out with such a high valuation. Especially if this is a bubble that ends up bursting the in next few years. However part of me wonders if this isn't a bubble, what will Groupon look like and be worth in 5 years.
- grandalf 16y agoTrue. It is possible. I'd make the following points against it: - Facebook knows where you live too. - Yelp is also copying groupon.. - There would seem to be little chance that the deals could remain all that great for long, especially if they don't lead to repeat business and loyal customers.
- deleted 16y ago[deleted]