4 ms·

well said but these deals tend to be more complicated than just the figures. google might have put in the conditions or groupon might have their own wishes. Wh

by SriniK 16y ago

well said but these deals tend to be more complicated than just the figures. google might have put in the conditions or groupon might have their own wishes. When they raised money last time, most of the decision making folks(founders and such) cashed out already with $160M http://techcrunch.com/2010/04/15/the-rest-of-the-details-on-that-monster-groupon-financing/ http://techcrunch.com/2010/04/15/the-rest-of-the-details-on-... So they are not in hurry Looking from google's point of view, not sure how they would have answered their investors. 500M revenues -> 150M-75M income(assuming 30%-15% profit margin) http://www.businessinsider.com/what-are-groupons-real-numbers-2010-4 http://www.businessinsider.com/what-are-groupons-real-number... that is a 12x - on revenue and 40x - on income. Just doesn't make sense.

LiveTheDream 16y ago
It's been reported[1] that revenue is actually $2 billion, not 500MM. [1] http://kara.allthingsd.com/20101203/exclusive-groupon-annual-revenues-actually-2-billion/ http://kara.allthingsd.com/20101203/exclusive-groupon-annual...
- SriniK 16y ago
  As mentioned in the article she is quoting gross merchandise sales not the gross revenue. As with groupon's business model, they pay ~70% of that to merchants. Refer the first link from businessinsider.com on the estimations.
zhyder 16y ago
GOOG itself has a P/E of 23x [1]. 40x for a fast growing company is not crazy. [1] http://www.google.com/finance?q=goog http://www.google.com/finance?q=goog
mogilny 16y ago
as some of the people already mention, numbers were "leaked". There are too many incentives to make up sources (page views, manipulate google share price, to solicit more bids...) revenues numbers are meaningless if you don't see the books for yourself. For example, a company can give 10 dollars to all new users. If this company has 35 million users, and takes in 30% of each transaction, that's 105 million dollars in revenues it can report. We wouldn't know.

by SriniK 16y ago

LiveTheDream 16y ago

It's been reported[1] that revenue is actually $2 billion, not 500MM. [1] http://kara.allthingsd.com/20101203/exclusive-groupon-annual-revenues-actually-2-billion/ http://kara.allthingsd.com/20101203/exclusive-groupon-annual...

SriniK 16y ago
As mentioned in the article she is quoting gross merchandise sales not the gross revenue. As with groupon's business model, they pay ~70% of that to merchants. Refer the first link from businessinsider.com on the estimations.

zhyder 16y ago

GOOG itself has a P/E of 23x [1]. 40x for a fast growing company is not crazy. [1] http://www.google.com/finance?q=goog http://www.google.com/finance?q=goog

mogilny 16y ago

as some of the people already mention, numbers were "leaked". There are too many incentives to make up sources (page views, manipulate google share price, to solicit more bids...) revenues numbers are meaningless if you don't see the books for yourself. For example, a company can give 10 dollars to all new users. If this company has 35 million users, and takes in 30% of each transaction, that's 105 million dollars in revenues it can report. We wouldn't know.