Groupon is Now Worth Only One-Third of What Google Offered to Buy it for

Posted by Knowlton Thomas

In 2010, rumours swirled that Google was looking to buy Groupon for $2 to $3 billion. Late in the year, it happened—only Google offered a shocking $6 billion.

More shocking, however, was that Groupon turned it down. The company thought it was just getting warmed up.

In 2011, Groupon filed for an IPO. The company debuted on the public stock market at $20 and had a nice opening day pop.

The company's market value was well over $10 billion, far ahead of Google's offer, which made then-supertsar CEO Andrew Mason look like a genius. He looks like a clown now.

That's because Groupon's first day pop disappeared. Then all gains disappeared. Then, quarter after disappointing quarter, Groupon's share sank. And sank. And sank.

Today the company is trading below $3, a new low and nearly 85% below its debut price. The company is valued at less than $2 billion—barely one-third of what Google offered just two short years ago.

Now Groupon is laying off staff and Andrew is scrambling to concoct excuses. But, clearly, investors have stopped listening.

Company:
Groupon
Website:
http://www.groupon.com
Location:
Chicago, Illinois, United States

Launched in November 2008, Groupon features a daily deal on the best stuff to do, see, eat, and buy in a variety of cities across the United States. We have about 200 wonderful people working in our Chicago office (a handful of whom you can see to your right), along with a smattering of people in Groupon's other cities. Our company philosophy is pretty simple: we treat our customers the way we like to be treated.... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more



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