Groupon IPO may value company at $15-$20 billion: source

NEW YORK Thu Apr 14, 2011 9:13pm EDT

An online coupon sent via email from Groupon is pictured on a laptop screen November 29, 2010 in Los Angeles. REUTERS/Fred Prouser

An online coupon sent via email from Groupon is pictured on a laptop screen November 29, 2010 in Los Angeles.

Credit: Reuters/Fred Prouser

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NEW YORK (Reuters) - Groupon is likely to pick Goldman Sachs and Morgan Stanley to lead a second-half initial public offering that could value the fast-growing daily deals site at $15 billion to $20 billion, a source familiar with the matter said on Thursday.

Groupon could raise as much as $1 billion in the IPO, which could come in the second half of 2011, although the exact size had not yet been determined, said the source, who was not authorized to speak to the media.

The source cautioned that the size of the IPO and the market value of the company were not final and could change.

The possible market value was first reported by the Wall Street Journal, which also said that JPMorgan Chase & Co was expected to have a co-manager role.

Groupon was not immediately available for comment.

The multibillion-dollar valuation is the latest in a string of high valuations for hot Internet companies including Facebook and Twitter, and raises questions about how these companies, albeit fast-growing, could ever justify the sky-high valuations.

Groupon said it has been profitable since June 2009, but does not disclose financial information.

Groupon Chief Executive Andrew Mason told Reuters in January it was talking to bankers about an IPO.

The site, which offers daily discounted deals at local restaurants and retail outlets, turned down a $6 billion buyout offer from Google Inc in December.

(Reporting by Clare Baldwin; Additional reporting by Paritosh Bansal and Martinne Geller; Editing by Gary Hill)

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Comments (5)
scumqueen wrote:
“IPO may value company at $15-$20 billion” In my business, if i turn in a forecast with a 25% swing they fire me. you have a 5 billion (YES THAT’S BILLION) dollar swing in the possible value of an IPO. that tells me somebody is pulling numbers out of their “proverbial”. it isnt worth 10 cents.

Apr 15, 2011 8:17am EDT  --  Report as abuse
Evon wrote:
The problem with Groupon is that its model is too easy to copy. You can’t patent a coupon. Unless they have some kind of technology that gives them an advantage other than popularity, they will only be one of dozens of sites just like it within a matter of years. I live in Chicago, and I get a groupon-like deal from 5 different entities every day. Sure, Groupon has national reach, but a valuation over 10B seems ludicrous to me.

Apr 15, 2011 2:18pm EDT  --  Report as abuse
toby3061 wrote:
When can we short it?

Apr 15, 2011 2:56pm EDT  --  Report as abuse
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