In less than a year, the combined $375 million bet on Groupon Inc by three U.S. mutual fund companies has turned into a $1 billion-plus hit according to Reuters.
Fidelity Investments, T. Rowe Price and American funds owner Capital Group combined to invest $375 million in Groupon in December, only to see the value of that money more than triple after Groupon's stock market debut on Friday.
In December, the companies participated in a Series G round of funding for Groupon. Fidelity and T. Rowe Price each invested $100 million while Capital Group put in $175 million, according to filings with the U.S. Securities and Exchange Commission.
All told, the three companies received a total of 11.87 million shares of Groupon's Series G preferred stock. On the eve of Groupon's initial public offering, each of those shares converted into four shares of the company's Class A common stock, regulatory filings show.
That gave the companies 47.48 million shares in Groupon. That stock was worth $1.24 billion after Groupon's shares on Friday closed at $26.11 in Nasdaq trading….
Wait, wait..there’s more at http://www.reuters.com/article/2011/11/04/us-funds-groupon-idUSTRE7A36ZQ20111104
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