Do you think Groupon is worth $25 BILLION? - GoFuckYourself.com

$5 submissions · 03-20-2011, 10:17 PM

Apparently some investmant bankers think so

Not exactly a proprietary model...

Bloomberg reports:

Quote:

Groupon Inc. has held talks with banks about an initial public offering that would value the online-coupon company at as much as $25 billion, according to two people with knowledge of the discussions.

The two-year-old startup?s IPO may happen this year and is unlikely to assign Groupon a valuation of less than $15 billion, according to the people, Bloomberg Businessweek reports in its March 21 edition. They asked not to be identified because the talks were private.

http://www.bloomberg.com/news/2011-0...5-billion.html

Adam_M · 03-20-2011, 10:36 PM

That's just crazy money!

marcop · 03-20-2011, 11:11 PM

We already had a dotcom boom back in the late 90's/early aughts... and that didn't turn out too well in the long run.

emjay · 03-21-2011, 12:51 AM

When I first heard about the group buying model, I thought it was a great idea and still do.

But I just don't get the numbers. First they turn down google's $6bn and now this. Crazy. imho.

drx · 03-21-2011, 12:59 AM

damn thats alot of papers

SleazyDream · 03-21-2011, 01:04 AM

makes you wonder what the coupon book companies were worth....

$5 submissions · 03-21-2011, 02:12 PM

Quote:

Originally Posted by marcop

We already had a dotcom boom back in the late 90's/early aughts... and that didn't turn out too well in the long run.

What are the signs that this time around it will go bust? Are the same factors in play now?

bronco67 · 03-21-2011, 02:27 PM

Isn't this the same type of shit that burst the bubble a few years back...overvalue-ing the living shit out of internet companies?

cooldude7 · 03-21-2011, 02:31 PM

25 bn no way.

kristin · 03-21-2011, 02:57 PM

I'm a Groupon'er, heavily.

I don't think it's worth $25 billion though. I have a theory that sites like Groupon are going to hinder brand loyalty and mess with pricing structures and businesses and consumers haven't yet seen this. Give it a little bit longer and when businesses aren't retaining because the person is jumping onto the next pedicure coupon place - they will start to notice that the 30-50% cut they gave Groupon might not have been worth it.

alexchechs · 03-21-2011, 02:58 PM

I was part of that 90s bubble bust in the dot com sector and this sounds exactly like it. Another company that is being over valued by so called "analysts".

Yes its a great site and concept that works very well but it is being way too over-valued right now.

djroof · 03-21-2011, 02:58 PM

is a new trent!

icymelon · 03-21-2011, 03:47 PM

The affiliate program only tracks sales for 30 days that seems like a good business model if it works for them

$5 submissions · 03-21-2011, 05:10 PM

Quote:

Originally Posted by kristin

I'm a Groupon'er, heavily.

I don't think it's worth $25 billion though. I have a theory that sites like Groupon are going to hinder brand loyalty and mess with pricing structures and businesses and consumers haven't yet seen this. Give it a little bit longer and when businesses aren't retaining because the person is jumping onto the next pedicure coupon place - they will start to notice that the 30-50% cut they gave Groupon might not have been worth it.

Your theory might be right. Groupon is a PARASITIC brand. People's loyalty grows to IT not the actual brand they are consuming for a particular deal.

mafia_man · 03-21-2011, 06:27 PM

Quote:

Originally Posted by bronco67

Isn't this the same type of shit that burst the bubble a few years back...overvalue-ing the living shit out of internet companies?

Yahoo had similar valuations, that is until the bubble burst.

slapass · 03-21-2011, 06:36 PM

They are super cash flow positive. Not sure I agree with the value but this is different then before.

Horny Dude · 03-21-2011, 07:32 PM

I don't think any site is worth $25 billion. I also see more and more Groupon clones, so I think they're going to run out of steam.

Barry-xlovecam · 03-21-2011, 08:10 PM

Is Google really worth $185.36 Billion?

GOOG

Is Groupon worth $25 Billion?

To whom?

marcop · 03-21-2011, 08:19 PM

I have friends who work in restaurants that take Groupons and they HATE the people who come in for the Groupon specials. These are people who don't normally eat out and don't know how to behave when they do. Groupon is a site for bottom feeders--yes, it scares up a few dollars from people who wouldn't normally spend those dollars, but those folks aren't going to be repeat customers. Perhaps once the marketplace figures that out, Groupon will go the way of BlockBuster.

LRS · 03-21-2011, 08:26 PM

now right now but in the future it might..

AJHall · 03-22-2011, 12:23 AM

Quote:

Originally Posted by $5 submissions

Your theory might be right. Groupon is a PARASITIC brand. People's loyalty grows to IT not the actual brand they are consuming for a particular deal.

Maybe but it probably has little effect on businesses on a whole, especially on already established brands. If someone finds something new via Groupon and they like it there's a good chance they'll become a repeat customer and refer others via word of mouth. A lot of buying patterns support the concept that people are creatures of habit. I don't think Groupon will change human behavior on a large scale, it's merely a new advertising medium that happens to be a new viral fad.

HomerSimpson · 03-22-2011, 02:09 AM

another bubble?

acctman · 03-22-2011, 02:15 AM

thats like saying groupoun is worth half of what facebook is worth.. thats bullshit, maybe 100mil if that

kichi · 03-22-2011, 05:08 PM

It cracks me up when people say "is it worth 25 billion?" when you have no clue how much money the company makes. Amazon trades at 63 times earnings. So if this coupon bullshit makes 400 million a year thats 25 billion, isnt it?

$5 submissions · 03-22-2011, 05:12 PM

It's got revenues. That's saying a lot more than MOST of the companies that went public in the Dot Com Bubble V.1.

bDok · 03-22-2011, 05:16 PM

No way. I was talking about this the other day. Why that guy doesn't take the money and run is far beyond me it's not even funny. You are first to market and you hold a decent market share. However, that pie is going to get chopped up real quick.

03-20-2011, 10:36 PM	#2
Adam_M Confirmed User Industry Role: Join Date: Mar 2006 Location: Australia Posts: 3,796	That's just crazy money! __________________ DiscountedPorn.Com ReviewedPorn.com

03-21-2011, 12:51 AM	#4
emjay Confirmed User Join Date: Dec 2004 Location: Back in Blighty Posts: 4,277	When I first heard about the group buying model, I thought it was a great idea and still do. But I just don't get the numbers. First they turn down google's $6bn and now this. Crazy. imho. __________________ I Run 500+ WhatsApp Groups. The Zuck Owns Me www.emjayconsultancy.com

03-21-2011, 12:59 AM	#5
drx Confirmed User Join Date: May 2007 Posts: 416	damn thats alot of papers __________________ http://www.hentaisexonline.com Hentai Sex Online http://www.hentaisexonline.com/LinkEX/

03-21-2011, 01:04 AM	#6
SleazyDream I'm here for SPORT Industry Role: Join Date: Jul 2001 Location: Phone # (401) 285-0696 Posts: 41,470	makes you wonder what the coupon book companies were worth.... __________________ This dog, is dog, a dog, good dog, way dog, to dog, keep dog, an dog, idiot dog, busy dog, for dog, 20 dog, seconds dog! Now read without the word dog.

03-21-2011, 02:27 PM	#8
bronco67 Too lazy to set a custom title Join Date: Dec 2006 Posts: 29,035	Isn't this the same type of shit that burst the bubble a few years back...overvalue-ing the living shit out of internet companies? __________________

03-20-2011, 11:11 PM	#3
marcop Content Producer Industry Role: Join Date: Nov 2005 Location: Los Angeles Posts: 4,143	We already had a dotcom boom back in the late 90's/early aughts... and that didn't turn out too well in the long run.

03-21-2011, 02:31 PM	#9
cooldude7 Confirmed User Industry Role: Join Date: Nov 2009 Location: Heaven Posts: 4,306	25 bn no way.

03-21-2011, 02:57 PM	#10
kristin GOO! Industry Role: Join Date: Sep 2002 Location: Back Home : ) Posts: 9,768	I'm a Groupon'er, heavily. I don't think it's worth $25 billion though. I have a theory that sites like Groupon are going to hinder brand loyalty and mess with pricing structures and businesses and consumers haven't yet seen this. Give it a little bit longer and when businesses aren't retaining because the person is jumping onto the next pedicure coupon place - they will start to notice that the 30-50% cut they gave Groupon might not have been worth it. __________________ Vacares rules. "Usually only fat guys have the kind of knowledge and ability that Kristin has." Last edited by kristin; 03-21-2011 at 02:59 PM..

03-21-2011, 02:58 PM	#11
alexchechs Confirmed User Join Date: May 2008 Location: BROOKLYN!!! Posts: 3,474	I was part of that 90s bubble bust in the dot com sector and this sounds exactly like it. Another company that is being over valued by so called "analysts". Yes its a great site and concept that works very well but it is being way too over-valued right now. __________________ Alex Chechs http://thefawnconspiracy.com

03-21-2011, 02:58 PM	#12
djroof JuicyDevils.gr Owner Industry Role: Join Date: Jan 2004 Location: Greece Posts: 25,371	is a new trent!

03-21-2011, 03:47 PM	#13
icymelon Confirmed User Industry Role: Join Date: Dec 2007 Location: Las Vegas Posts: 3,220	The affiliate program only tracks sales for 30 days that seems like a good business model if it works for them __________________ Network Of Adult Blogs With Hardlink Rentals Available

03-21-2011, 06:36 PM	#16
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,627	They are super cash flow positive. Not sure I agree with the value but this is different then before.

03-21-2011, 07:32 PM	#17
Horny Dude Earn enough to buy coffee Industry Role: Join Date: May 2002 Location: San Diego, Ca. Posts: 4,912	I don't think any site is worth $25 billion. I also see more and more Groupon clones, so I think they're going to run out of steam. __________________

03-21-2011, 08:10 PM	#18
Barry-xlovecam It's 42 Industry Role: Join Date: Jun 2010 Location: Global Posts: 18,083	Is Google really worth $185.36 Billion? GOOG Is Groupon worth $25 Billion? To whom?

03-21-2011, 08:19 PM	#19
marcop Content Producer Industry Role: Join Date: Nov 2005 Location: Los Angeles Posts: 4,143	I have friends who work in restaurants that take Groupons and they HATE the people who come in for the Groupon specials. These are people who don't normally eat out and don't know how to behave when they do. Groupon is a site for bottom feeders--yes, it scares up a few dollars from people who wouldn't normally spend those dollars, but those folks aren't going to be repeat customers. Perhaps once the marketplace figures that out, Groupon will go the way of BlockBuster.

03-21-2011, 08:26 PM	#20
LRS Confirmed User Industry Role: Join Date: Jan 2011 Location: Charlotte, NC Posts: 324	now right now but in the future it might.. __________________ Do You Google? ICQ: 155-193

03-22-2011, 02:09 AM	#22
HomerSimpson Too lazy to set a custom title Industry Role: Join Date: Sep 2005 Location: Springfield Posts: 13,826	another bubble? __________________ Make a bank with Chaturbate - the best selling webcam program Ads that can't be block with AdBlockers !!! /// Best paying popup program (Bitcoin payouts) !!! PHP, MySql, Smarty, CodeIgniter, Laravel, WordPress, NATS... fixing stuff, server migrations & optimizations... My ICQ: 27429884 \| Email:

03-22-2011, 02:15 AM	#23
acctman Confirmed User Join Date: Oct 2003 Location: Atlanta Posts: 2,840	thats like saying groupoun is worth half of what facebook is worth.. thats bullshit, maybe 100mil if that

03-22-2011, 05:08 PM	#24
kichi Confirmed User Industry Role: Join Date: Aug 2007 Location: Seattle, WA Posts: 338	It cracks me up when people say "is it worth 25 billion?" when you have no clue how much money the company makes. Amazon trades at 63 times earnings. So if this coupon bullshit makes 400 million a year thats 25 billion, isnt it? __________________ no sig

03-22-2011, 05:12 PM	#25
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	It's got revenues. That's saying a lot more than MOST of the companies that went public in the Dot Com Bubble V.1. __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

03-22-2011, 05:16 PM	#26
bDok Confirmed User Join Date: Feb 2005 Location: SD/OC/LA Posts: 1,917	No way. I was talking about this the other day. Why that guy doesn't take the money and run is far beyond me it's not even funny. You are first to market and you hold a decent market share. However, that pie is going to get chopped up real quick. __________________ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Warriors come out to plaAAaayyy! =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=