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Henry Blodget: Groupon is running low on cash

• chollida1 15y ago
  > It is also worth noting that, in the history of the company, Groupon has raised a total of $1.1 billion of cash--and paid out $942 million of that cash to its early investors and executives (highly unusual for such a young company). If Groupon does get into cash trouble, therefore, it will not be because the company didn't discover an amazing new business opportunity or raise all the capital it needed. It will be because of, well, greed. Can this really be correct? Has there ever been another company that raised this much and spent nearly All of it Paying off old investors and insiders before going public?
  • VladRussian 15y ago
    they squandered not only the raised capital, the money that is supposed to be paid to merchants is partially gone too: "... Specifically, as of June 30, Groupon owed $392 million to merchants for old Groupons--way more than the $225 million of cash the company had on hand. And merchant bills aren't the only bills Groupon has to pay. As of June 30, Groupon had $680 million in current liabilities--bills the company has to pay. Meanwhile, Groupon only had $376 million of current assets with which to pay them (composed mainly of cash and receivables). Another way of looking at this is that, if Groupon had been liquidated as of June 30, the company would have had a net of $304 million of bills that it would have been unable to pay. ..."