TechCrunch  Jan 21  Comment 
 Brandfolder, a startup that helps companies manage their brand assets, announced yesterday that it has raised $2 million in new funding. The idea might sound, um, a little dry, but the Denver-based startup has attracted some famous customers,...
Benzinga  Jan 15  Comment 
Analysts at Evercore ISI upgraded Groupon, Inc. (NASDAQ: GRPN) from Sell to Hold. The price target for Groupon has been raised from $6.50 to $8. Groupon shares have dropped 32.88% over the past 52 weeks, while the S&P 500 index has gained...
Benzinga  Jan 15  Comment 
Forbes  Jan 14  Comment 
Meet the nine social networking entrepreneurs and investors whose fortunes dropped as stocks like Facebook, Groupon and Zynga tumbled in value.
MarketWatch  Jan 8  Comment 
The head of national sales for Groupon Inc. has stepped down from his day-to-day role at the company to pursue an entrepreneurial venture, Re/code reported, citing a source familiar with the matter. Rajen Ruparell joined Groupon as part of an...
TheStreet.com  Dec 29  Comment 
NEW YORK (TheStreet) -- Shares of Groupon  closed up 1.47% at $8.26 today after it was reported that Goldman Sachs Group plans to buy up to a 20% stake in Groupon's Korea-based ticket and ecommerce company Ticket Monster, the Korea Times...
Forbes  Dec 29  Comment 
The most recent short interest data was recently released by the NASDAQ for the 12/15/2014 settlement date, and Groupon Inc. (NASD: GRPN) is one of the most shorted stocks of the Russell 3000, based on 6.44 "days to cover" versus the median...
Benzinga  Dec 26  Comment 
Shares of Groupon Inc (NASDAQ: GRPN) surged Friday amid news that Goldman Sachs Group Inc (NYSE: GS) may acquire a stake in Ticket Monster. "Currently, Ticket Monster is 100 percent owned by Groupon...Groupon wants to sell at least a 20...


Groupon (NASDAQ:GRPN) is a group buying site which allows merchants to sell deals or discounted offers on their goods or services. The merchant can require that a minimum number of customers must purchase the deal before it becomes valid, or the merchant may limit the number of deals that can be sold. Individuals can subscribe to Groupon, and they receive targeted deals based on their location. Groupon makes money by charging customers for each offer, but the company pays merchants a negotiated percentage of each sale.[1]

Business Overview

For the full year 2010, Groupon's total revenue was $312.9M. This was substantial increase over the total revenue of $14.5M in 2009. The company had not achieved a net income however, as of 2010. In 2009, its net loss was $1.3M and in 2010 it was $413.4M. The largest cost the company incurred in 2010 was marketing, which was $290.6M in 2010. [2] This $20 IPO placed the value of the company at $12.7B.[3]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on November 3, 2011. The company offered 35M shares each for $20. This was above the $16-$18 price range. The company sold 35M shares. This deal raised $7B. The lead bookrunners of the deal were Morgan Stanley, Goldman, and Credit Suisse.[4]

Trends & Forces

High Marketing Expense

Groupon's marketing in 2010 was nearly as large as its total revenue. The company uses marketing to encourage individual to subscribe to Groupon and to purchase live offers. Groupon believes that while it has faced a high marketing costs, such costs will be lower in the future as the company will have created a customer base. However, if such costs remain elevated, Groupon's profits will be directly lowered.[5]

Highly Competitive Industry

While Groupon is a large player in the daily-deal market, the market is very competitive. Groupon does not have any significant way to differentiate itself aside from the type of offers and the level of the discount. This means that defending its market share is relatively hard.[6]

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