Bloomberg writes that Groupon Inc.’s $540.2 million in operating losses since 2008 may leave some investors leery of buying shares in a company with a business model so easy to copy that it has spawned 482 imitators.
Groupon, the biggest provider of online daily-deal coupons, said yesterday that it plans to raise $750 million in an IPO, the most yet for a U.S. social media company.
Sales surged more than 14-fold to $644.7 million last quarter, making Chicago-based Groupon bigger than established technology companies like Citrix Systems Inc. and Autodesk Inc. Yet, with marketing costs rising faster than sales, Groupon may not make money fast enough to warrant the $25 billion valuation it was said to be contemplating in March, said Pat Becker Jr., a portfolio manager at Becker Capital Management Inc….
Read more at:
http://www.bloomberg.com/news/2011-06-03/groupon-s-540-million-in-losses-may-leave-investors-leery-of-share-sale.html
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