5 ms·

Competitor: Groupon is insolvent; could IPO be pulled?

jacekis 15y ago
I bet $6bn from Google sounds pretty good around now.
- jasonmcalacanis 15y ago
  ya think?
anigbrowl 15y ago
I'm not seeing the News aspect here - there was extensive discussion of the amended filings and the diminishing runway problem last week, and this article doesn't do anything mroe than recycle existing speculation. I've been skeptical of this IPO for a long time, but there's a lot of people milking the firm's difficulties for pageviews rather than adding any meaningful content of their own. tl;dr this feels like a pile-on
- jasonmcalacanis 15y ago
  actually, this does have two very important pieces of information: 1. an actual competitor going on record saying whey they are insolvent (and i did that interview myself!) 2. the quote from an investor who think the IPO might get pulled. (i got that quote this weekend from someone deep in the industry).
  - anigbrowl 15y ago
    OK, but: 1. that interview was conducted 4 weeks ago - it's the first sentence of the story, and the video has been on YouTube since July 25. So that doesn't seem new to me. Plus, what he's saying is the conventional wisdom anyway based on the prior IPO filings and as a competitor of Groupon he's obviously not a neutral observer. 2. 'A Respected Investor' saying something isn't a whole lotta news either; it's just a sampling of the existing spectrum of opinion. Now, I know you have to respect confidentiality, but without any context, how much weight should I accord this investor? Is s/he respected in the tech sector, involved with the company or its underwriters, has s/he invested in 1 successful IPO, 10, or 100? I'm sure you added this information because you consider the person's judgment worth sharing, but in any sample of 10 professional investors you'll be able to find a true believer and a skeptic. I'm sorry my commentary came off as dismissive or hurtful. It just didn't 'click' with me, but maybe other people will find it useful in a way I didn't.
    - jasonmcalacanis 15y ago
      1. True it's from an older interview, but only 10-50k folks have probably heard it. an additionally 10-50k folks know about it now. So, it's new to them. 1a. It's newsworthy that a competitor would come out that strongly either way. 2. If LAUNCH or I say it's a respected investor you can take that as a top 25 investor in the space. you know my rolodex right? :-)
      - anigbrowl 15y ago
        Sure - I'm not out to argue, just clarify how I arrived at my opinion after reading the piece. As you can see, I'm a pernickety fellow :-)
lVloose 15y ago
Groupon is waaay over valued. They have until recently been giving tons of stuff away. For example, everyone who signed up for emails telling them about new deals in their area would receive a $10 or $20 Groupon cash gift to use. This was widely exploited by people who frequent "cheating sites". These free codes were also able to be stacked on accounts. People have used this method to get everything from free dinners to free lasik eye surgery. All anyone had to do was keep creating Groupon accts...and repeat. Im am 100% positive that Groupon has been exploited for tens of thousands...maybe millions.
- anigbrowl 15y ago
  People have used this method to get everything from free dinners to free lasik eye surgery. FX: disapproval with a tinge of jealousy 8-/
  - rockya 15y ago
    Groupon specifically says in their S-1 that they do nothing to stop such cheating. Given that they are being valued based on subscribers and revenue, it's in their interests not to stop cheating. If you want to create 100 accounts, you're helping them sell this turd of an offering to the public.

I bet $6bn from Google sounds pretty good around now.

jasonmcalacanis 15y ago
ya think?

I'm not seeing the News aspect here - there was extensive discussion of the amended filings and the diminishing runway problem last week, and this article doesn't do anything mroe than recycle existing speculation. I've been skeptical of this IPO for a long time, but there's a lot of people milking the firm's difficulties for pageviews rather than adding any meaningful content of their own. tl;dr this feels like a pile-on

jasonmcalacanis 15y ago
actually, this does have two very important pieces of information: 1. an actual competitor going on record saying whey they are insolvent (and i did that interview myself!) 2. the quote from an investor who think the IPO might get pulled. (i got that quote this weekend from someone deep in the industry).
- anigbrowl 15y ago
  OK, but: 1. that interview was conducted 4 weeks ago - it's the first sentence of the story, and the video has been on YouTube since July 25. So that doesn't seem new to me. Plus, what he's saying is the conventional wisdom anyway based on the prior IPO filings and as a competitor of Groupon he's obviously not a neutral observer. 2. 'A Respected Investor' saying something isn't a whole lotta news either; it's just a sampling of the existing spectrum of opinion. Now, I know you have to respect confidentiality, but without any context, how much weight should I accord this investor? Is s/he respected in the tech sector, involved with the company or its underwriters, has s/he invested in 1 successful IPO, 10, or 100? I'm sure you added this information because you consider the person's judgment worth sharing, but in any sample of 10 professional investors you'll be able to find a true believer and a skeptic. I'm sorry my commentary came off as dismissive or hurtful. It just didn't 'click' with me, but maybe other people will find it useful in a way I didn't.
  - jasonmcalacanis 15y ago
    1. True it's from an older interview, but only 10-50k folks have probably heard it. an additionally 10-50k folks know about it now. So, it's new to them. 1a. It's newsworthy that a competitor would come out that strongly either way. 2. If LAUNCH or I say it's a respected investor you can take that as a top 25 investor in the space. you know my rolodex right? :-)
    - anigbrowl 15y ago
      Sure - I'm not out to argue, just clarify how I arrived at my opinion after reading the piece. As you can see, I'm a pernickety fellow :-)

lVloose 15y ago

Groupon is waaay over valued. They have until recently been giving tons of stuff away. For example, everyone who signed up for emails telling them about new deals in their area would receive a $10 or $20 Groupon cash gift to use. This was widely exploited by people who frequent "cheating sites". These free codes were also able to be stacked on accounts. People have used this method to get everything from free dinners to free lasik eye surgery. All anyone had to do was keep creating Groupon accts...and repeat. Im am 100% positive that Groupon has been exploited for tens of thousands...maybe millions.

anigbrowl 15y ago
People have used this method to get everything from free dinners to free lasik eye surgery. FX: disapproval with a tinge of jealousy 8-/
- rockya 15y ago
  Groupon specifically says in their S-1 that they do nothing to stop such cheating. Given that they are being valued based on subscribers and revenue, it's in their interests not to stop cheating. If you want to create 100 accounts, you're helping them sell this turd of an offering to the public.