Groupon looks like the incredibly shrinking IPO. Just six months ago, its valuation was roughly $25 billion. Now? Well, according to a Bloomberg article, it could be as low as $3 billion. Keep in mind that last December, Google (NASDAQ:GOOG) offered $6 billion for the daily-deals site.
So why the implosion? For the most part, it is yet another classic case of the boom-bust nature of the tech world. Let’s face it, only a few companies are able to become long-term winners, such as Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and Apple (NASDAQ:AAPL). The rest either sell out or go bust.
In the case of Groupon, it certainly was targeting a huge market opportunity. Local merchants always are trying to find ways to get customers. So yes, they will pay a premium for this. Read