Groupon Reevaluates its Planned IPO Due to Volatile Market
Chicago, Illinois – Groupon, a leading provider of daily deals in the U.S. has postponed its planned Initial Public Offering or IPO for a couple of weeks due to stock turmoil in the U.S. market. According to the Wall Street Journal, Groupon’s plan of $750 million IPO to be launched on the upcoming labor day has been put on halt and has canceled its roadshow which was intended to attract new investors.
Aside from the volatile market which affected Groupon IPO, the daily deal leader is also facing another turmoil which includes the CEO Chief Executive Andrew Mason sending memo’s to the company’s employees which contains private financial information and details on the status and strength of the company which is prohibited by Securities and Exchange Commissions (SEC) rules.
Groupon was founded two and a half years ago and became an instant hit with consumers looking for promos and discounts in the web and also a big hit to local merchants for their products and services are being advertised. Groupon’s dominance had been dwindling the past months due to fast growth of competitors like the LivingSocial.com.
Groupon is available in more than 500 cities in the world and it received a series D funding of $950 million in the first month of January by huge list of investors like Andreessen Horowitz and in 2008 during its early stage received a series A funding of more than $4 million from Chevy Chase-based New Enterprise Associates (NEA) Venture Capital firm.
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