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