11–20 of 54 posts
A theory: Groupon leaked the memo so that it would be forced to pull the IPO, similar to Wired in 1996.
And leave the G round investors, who put in $950 million in January ( http://www.businesswire.com/news/home/20110110006746/en/CORR... ), holding the bag? It doesn't seem like something they'd do deliberately.
If they don't IPO, how long until they run out of cash on their current trajectory? I seem to remember the runway was surprisingly short (something like this or next quarter), in part because of using fundraising to give cash to early investors and insiders.
So you have to believe the answer is soon. Those G round investors are getting extremely squeezed they need either an IPO or they are faced with having to put another round in to get some additional short term runway. I doubt at this point they're going to have a lot of people lining up to put new money in (or if they do the terms will be pretty generous).
There is still a way out if a Google or maybe an Amazon wanted to take a shot at a bid right now. Groupon for $4 billion Anyone? Anyone?
Maybe they can turn this around by offering their stock for 50% off normal ticker prices. Then surely people, having bought it once and discovered how awesome it is, will come back again and again to pay full price.
Earlier quoted context omitted.
And leave the G round investors, who put in $950 million in January ( http://www.businesswire.com/news/home/20110110006746/en/CORR... ), holding the bag? It doesn't seem like something they'd do deliberately.
Yes, that makes it interesting. Which is better for previous investors: IPO bomb or another private market raise?
How long can groupon survive without more funding? The way their financials sounded, I doubt they could even carry on as they are currently through the end of the year. That's a lot of pressure in an economy that could be back on the ropes.
If they don't IPO, how long until they run out of cash on their current trajectory? I seem to remember the runway was surprisingly short (something like this or next quarter), in part because of using fundraising to give cash to early investors and insiders.
For example, Mason cashed out about $28 million, and Lefkowsky about $382 million. Reinvesting most of that would speak louder than another 'quirky' bit of made-to-leak copywriting.
If they don't IPO, how long until they run out of cash on their current trajectory? I seem to remember the runway was surprisingly short (something like this or next quarter), in part because of using fundraising to give cash to early investors and insiders.
out of their last "uh like a billion" dollar round $810M went back out the door, they only kept $136M for operating expenses and I believe they're at about about a $100M a quarter run rate. So you have to believe the answer is soon . Those G round investors are getting extremely squeezed they need either an IPO or they are faced with having to put another round in to get some additional short term runway. I doubt at…