Direct Line Blog

Groupon's IPO raises $700 million

Share this article:

Groupon's Nov. 4 initial public offering (IPO) raised $700 million, the largest IPO by an Internet company since Google's 2004 IPO generated $1.7 billion. The IPO, which took more than five months to complete due to accounting metric discrepancies, brings the daily deals company's valuation to roughly $12.7 billion.

The stock priced at $20 and shares opened at $28, before reaching $30 a few minutes after trading started. The company issued 35 million shares, which equals approximately 5% of the total company. Several financial media outlets estimate the company's value to be close to $18 billion, or roughly three times Google's $6 billion acquisition offer.

Groupon filed for a $750 million IPO in June. The IPO was delayed in September due to “market volatility,” according to an unnamed source. This same source told The Wall Street Journal that the U.S. Securities and Exchange Commission contacted a Groupon attorney with questions about a leaked memo written by Groupon CEO Andrew Mason in which the executive may have made public statements about the company's financial status before the IPO.

The Chicago-based company most recently submitted a regulatory filing on Oct. 7 that said the company would significantly reduce online marketing spending.

In the past 12 months, the company suffered several setbacks, namely COO Margo Georgiadis leaving her post after five months to return to her former employer Google; Rob Solomon, president and COO stepping down after about one year at the company; and a series of Super Bowl ads the company pulled in response to criticism.

Share this article:
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week

Data Services, Inc. meets the needs of today's data-driven marketer by providing front-end database management and data analytics platforms alongside our expertise in global contact data quality, database building and ongoing maintenance that comes with our 45+ years in business.


Find out more here »

More in Direct Line Blog

My Plan to Replace the Postal Service's Truck Fleet

My Plan to Replace the Postal Service's Truck ...

The Postal Service uses its aging fleet as an object of pity. Why not deploy it as a revenue-generating media vehicle instead?

Social Is a Key Part of 24 Hour Fitness' Lead Gen. Regimen

Social Is a Key Part of 24 Hour ...

Peer-to-peer referrals produce healthy conversion rates.

Not Every Small Business Prioritizes Marketing

Not Every Small Business Prioritizes Marketing

Whether or not it's to their detriment, some companies simply aren't interested in marketing, and probably never will be.