Reuters  Nov 28  Comment 
* KFit Group continues its push to lead O2O in Southeast Asia with the acquisition of Groupon Malaysia
Forbes  Nov 28  Comment 
November 3rd marked the one year anniversary of Rich Williams taking over as Groupon CEO. He was promoted to CEO, from COO, at a time when Groupon’s gross margins were spiraling down and the company’s share price had plummeted over 65% in the...
MarketWatch  Nov 2  Comment 
Yelp reported its second-highest reported profit Wednesday, while Groupon and Angie’s List are exploring other ways to grow and survive.
Motley Fool  Oct 31  Comment 
The leading provider of flash-sale deals moves lower after posting quarterly results and announcing the acquisition of LivingSocial.
Benzinga  Oct 27  Comment 
  Toward the end of trading Thursday, the Dow traded up 0.03 percent to 18,204.23 while the NASDAQ declined 0.42 percent to 5,228.40. The S&P also fell, dropping 0.07 percent to 2,137.83. Leading and Lagging Sectors Thursday afternoon,...
Motley Fool  Oct 27  Comment 
The daily-deals site got discounted after a surprise announcement that it was acquiring rival LivingSocial.
Benzinga  Oct 27  Comment 
Groupon Inc (NASDAQ: GRPN) shares plunged more than 19 percent as investors were disappointed with falling gross billings and the acquisition of loss-making Living Social. For the third quarter, the daily deals site reported...
Forbes  Oct 27  Comment 
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative...


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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