The board of directors for Groupon, the world's largest group-buying site, has authorized the company to raise upward of $1 billion. This round of equity, for what Forbes called the fastest growing company of all-time, would be the biggest financing "since Pixar sought $500 million in 1995," venture capital data firm VC Experts yesterday, according to the Globe and Mail.
The online discount coupon company, which specializes in local advertising, is seeking the funding after reports last month that it was in talks to sell itself to Google Inc. for up to $6 billion, in what would have been the web advertising giant’s biggest ever acquisition.
Groupon made its intentions known in an restated certificate of incorporation that it filed with the State of Delaware on Dec. 17, according to Justin Byers, head of business intelligence for VC Experts, which specializes in providing data on private companies.
Turning down a whopping $6 billion from Google still makes headlines, but Groupon knows long-term it was too early. Consider companies like Facebook, and even Google itself - if they let themselves be swallowed by then-titans, they would never be the leaders they are today. Now, set to raise $950 million, which shouldn't be a problem for them, Groupon is apt to continue dominating the heavily saturated group-buying market.
Do you use Groupon or other group buying sites? Why or why not?