Groupon stock sinks to new low, investors sue
chicagobusiness.com
Groupon stock sinks to new low, investors sue
1–10 of 137 posts
Re: Groupon stock sinks to new low, investors sue
#2Please. As if anyone with half a brain couldn't see this ponzi scheme on the blowup train of doom. Who are these magical investors?
Re: Groupon stock sinks to new low, investors sue
#3Who would have imagined that groupon had a future? It worked on the novelty effect and it was doomed to fail.
On the other hand, Chicago business is full of bugs. Ghostery block 13 (!) calls to different websites such as: Quantcast, 24/7 real media, Outbrain etc... I won't visit this website again. I wish I was warned of that before hand not when I go to the website, I value my privacy more than going there.
Re: Groupon stock sinks to new low, investors sue
#4They should be going after the SEC for allowing this company to IPO in the first place. Going public used to be a privilege, now it seems too easy.
Re: Groupon stock sinks to new low, investors sue
#5Please. As if anyone with half a brain couldn't see this ponzi scheme on the blowup train of doom. Who are these magical investors?
Goldman Sachs - for starters. They set up the deal - and let their "muppet" clients get their eyes ripped out. Business as usual for them.
This is not surprising to me - I did say that they were going to "ladder" the price and pocket a huge chunk of money - then watch everyone else get screwed.
== Sources ==
My previous comments on Groupon: http://news.ycombinator.com/item?id=3139614
Groupon Chooses Goldman Sachs & Morgan Stanley as the underwriters for their IPO: http://www.bloomberg.com/news/2011-04-15/groupon-said-to-cho...
Goldman calls their clients "Muppets": http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-g...
Re: Groupon stock sinks to new low, investors sue
#6GRPN was a always a short sellers dream come true. Next up, ZNGA.
Re: Groupon stock sinks to new low, investors sue
#7As a Silicon Valley native currently living in Chicago, I've always found it disappointing that Groupon is the poster child of innovation and entrepreneurship in Chicago. They seem to lack a solid business plan and have a history of deliberately misleading investors and businesses. Far more impressive companies, such as 37signals or GrubHub, are based here that deserve that kind of attention instead.
I very much doubt the legitimacy of this story, but I was in a barbershop a few weeks ago, where the owner told me about one of the Groupon executives who was in the shop earlier. He was saying we shouldn't expect Groupon to be around in 10 years because the company's plan is to collect as much cash as possible, fire everybody, and shut down, keeping the money for the investors. While I doubt a Groupon executive would have actually said that in a barbershop, I can believe that actually was their long-term plan, but if things keep up at their current rate, I'm not sure if Groupon will even last that long.
Re: Groupon stock sinks to new low, investors sue
#8Who would guess that there could be an integrity issue with a company that tried to invent new accounting rules where marketing costs don't appear on the balance sheet? You'd have a crystal ball or a brain to see this coming.
Re: Groupon stock sinks to new low, investors sue
#9People I know who currently work for Groupon say that the culture there is falling apart. To get the numbers investors expect the sales people need to reach unrealistic sales numbers. Management is grasping at straws, trying every trick in the book to not let the whole thing fall apart. The Groupon model is simply not sustainable, it was a onetime gimmick.
As someone who lives in Chicago, I am worried about its failure and with that the future of the tech scene in Chicago.
Re: Groupon stock sinks to new low, investors sue
#10As a Silicon Valley native currently living in Chicago, I've always found it disappointing that Groupon is the poster child of innovation and entrepreneurship in Chicago. They seem to lack a solid business plan and have a history of deliberately misleading investors and businesses. Far more impressive companies, such as 37signals or GrubHub, are based here that deserve that kind of attention instead. I very much doub…
> He was saying we shouldn't expect Groupon to be around in 10 years because the company's plan is to collect as much cash as possible, fire everybody, and shut down, keeping the money for the investors.
Every bubble produces these, but usually the money is kept for the management-investors only. SCMR and Zhone from the tech bubble executed that plan spectacularly.