Daily Deals Industry Imploding Already
 

http://mashable.com/2011/08/30/one-t...y-daily-deals/

no surprise - another great Internet idea hatched without figuring out if it's really a profitable sustainable business, trick is to get the IPO or buy out done before everybody figures it out.

And if the investors and executives at Groupon hadn't been so greedy and full of hubris, they would've accepted Google's offer of $6 billion for their business: http://www.businessweek.com/technolo...124_281295.htm

interesting read :thumbsup

seriously. We all said that when they turned it down. DOH!

Talk about missing the cashout of the century right there... no fucking doubt. Idiots who are going to be singing their regrets for the rest of their pathetic lives.

Man, they are gonna eat some major shit! :1orglaugh

thats because the owners of Groupon knew they this business wasn't sustainable for the 5 year plan in the agreement.

most large purchases like that dont go "ill give you $6b and you give me the keys and we walk away." rather, in order to get paid revenue numbers must be met and they probably knew it wouldn't continue to grow in that path :2 cents:

There's over 300 daily deal companies and they all are fighting over a pool of businesses in any given area. Eventually it becomes harder and harder for some of them to find new offers to give their membership base. Google's version of Groupon http://offers.google.com is finally set to take off, will be interesting to see how quickly they grow.

I don't think Groupon not accepting the offer had anything to do with them thinking the business isn't sustainable. Yes part of Google's offer had performance incentives for managers, but it was a very small part of the offer, the core amount would have indeed paid to Groupon's owners had they accepted. I believe at the time, Groupon's owners felt with an ipo they could grow larger than a 6b valuation, however I bet they'd gladly accept that offer nowadays.

If you look into the prior project(s) of the Groupon founder you will learn that he's very good at pumping and dumping his companies.

I think it could work. He has to cut advertising money and staff. They have not took google`s offer because they get more money at the stock exchange when they go public.

$6 billion for groupon would have made the MySpace deal look like small bananas... Now I wonder if the Groupon people are kicking their own asses wondering why they turned down the money. They will be lucky to fetch $500,000,000 by years end.

actually it had a lot to do with the fact that google would not pay operational transfer cost if regulators denied the deal

It pretty standard when a major company (monopoly) tries to buy a smaller company where there is synergy (google maps) to agree to pay penalty if the deal doesn't get approved by the trade commission.

usually companies get around paying the penalty by carving off parts of the business
google wanted an all or nothing deal, but they didn't want the downside risk if the regulators said no to it.

Once I heard how shitty of a deal it is for the actual businesses that give away the deals it seemed only a matter of time this stupid idea would die

Data on that has been dismal from the start. It was only a matter of time.

"Free" customers are not exactly what businesses should be paying an arm and a leg for.

In my country there is also flood of such sites,one company even claim how they earned 2 mil already but it's probably bullshit,since we like to bullshit.

I think Groupon's amended S-1 filing during the IPO is what hurt their business the most. I think they could have opened real strong and would be in a much better place had that not happened. I hope they pull through, I'm rooting for the little guy :thumbsup

Real world business discussion on GFY: two people Google what actually happened and the rest don't even bother to read the other comments in the thread.

.... and a third goes off topic and complains about GFY business discussions :yinyang

:1orglaugh

Funny seeing pornographers that are shocked that getting new customers for free isn't a great business model. Real world business is no different than online. Just because someone sends your crap business 1000 $1.00 trials, doesn't mean you got 1000 new customers for life. Groupon is hitting all the major cities, business by business with a massive sales force and proving that point to everyone who participates.