Groupon's Sinking Valuation Now Down to $12 Billion

Getty
Rebecca Greenfield 343 Views Oct 19, 2011

Groupon's finally taking its IPO on the road, but the worth it's placing on its business is far lower than the $30 billion it sought last year. DealBook's Evelyn M. Rusli and Michael J. De La Merced hear from sources that the online deal giant is now considering something closer to $12 billion. "These people said the current expectation is for a valuation to be more than $10 billion and if markets improve, could be significantly higher," they write. Less than half of the original offering, the valuation reflects Groupon's shaky status since the company first announced a ginormous IPO back in June. The company's value had been in question after some shady accounting practices and a general skepticism for the daily deals site's business model and had been has been putting off going public in the shaky market. The company's expected on the Nasdaq after next week's road show. 

Want to add to this story? Let us know in comments or send an email to the author at rgreenfield at theatlantic dot com. You can share ideas for stories on the Open Wire.

Topics: ,
Related Articles   More by Rebecca Greenfield

Groupon's Fall from IPO Grace

Groupon is Taking its IPO on the Road, Finally

Why IPO's Must Always Go Pop

 

Another Swing at the Invisibility Cloak; Loud Music Is for the Bad Kids

Breaking Up with Google Chrome Is Hard to Do

User Comments

Please type your comment and click Post. If you’re not already logged in you will be prompted to log in or register

  • The Atlantic Wire on Twitter
  • The Atlantic Wire RSS Feed
  • The Atlantic Wire iPhone App