X

Groupon IPO Values Firm at $12.8 Billion

Daily deals king overpriced, analysts say
By Rob Quinn,  Newser Staff
Posted Nov 4, 2011 3:46 AM CDT

(Newser) – Groupon has raised $700 million in the biggest initial public offering by a US Internet firm since Google's 2004 IPO. The daily deals leader floated some 5% of the firm for $20 a share, above an initial range of $16 to $18, giving the company a market value of around $12.8 billion, Reuters reports. Groupon isn't making a profit, and there have been plenty of questions raised about its accounting procedures, leading many analysts to consider it overpriced.

story continues below

"It's a flashback to the late '90s. We've seen this game before and we know how it's going to end," an accounting professor tells CNN. Others see Groupon, which began trading on the NASDAQ Friday under the ticker GRPN, as a good buy. Groupon "is a company with permission to market to 150 million consumers daily. No other company in the world has ever had that type of reach," said the chief executive of industry tracker DailyDealMedia. (Read more Groupon stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X