The Homa Files

Punch line: Groupon’s luster – and valuation – are starting to fade.  These guys will rue the day they sent Google packing.

According to the WSJ:

Last year, four mutual fund companies – including Growth Fund of America, T. Rowe Price and Fidelity Investments — invested in Groupon at a price that valued the entire company at $4.7 billion,

Then,  Groupon turned down an offer from Google reported to be just south of $6 billion?

At the time, Groupon was said to have potential IPO valuations ranging from $15 billion to as high as $30 billion.

But the U.S. IPO market has been largely dormant, the Securities and Exchange Commission has required more-conservative accounting from Groupon, and a top company executive has departed.

Some IPO analysts now predict a Groupon IPO, if completed, might value the company at $5 billion to $10 billion.

If the valuation keeps falling, some early-in funds may find themselves marking down the value of their holdings on their books.

Of course, I’m betting the under …

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Tags: Groupon, Valuation

This entry was posted on October 19, 2011 at 6:27 am and is filed under Daily deal sites. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.