News

Groupon files for its own $750m IPO


Tags:

Pandora’s IPO details got rather lost in the tech world’s excitement around the IPO of daily deals firm Groupon yesterday. The company has filed for an IPO to raise $750 million, with documents that reveal the sheer scale of its growth. Groupon’s revenues were $94,000 in 2008, $30.5 million in 2009 and $713.4 million in 2010. Oh, and in the first quarter of 2011 alone, its revenues were $644.7 million. Groupon has 83 million subscribers to its daily deals, with 15.8 million of them actually having purchased something in the first quarter of this year. However, while Groupon is making a lot of money, it’s also losing it – in 2010, it posted a loss of $456.3 million. In a letter to potential investors, CEO Andrew Mason warns that “We spend a lot of money acquiring new subscribers because we can measure the return and believe in the long-term value of the marketplace we’re creating. In the past, we’ve made investments in growth that turned a healthy forecasted quarterly profit into a sizable loss.” Groupon actually raised nearly $1.1 billion in VC funding recently, but it turns out that $946.8 million of that was immediately paid out to directors, officers and stakeholders. Sources: VentureBeat Business Insider Mashable

Like what you’ve read here? This is just a snippet from our subscription service.

Our subscribers get the most important digital music news and analysis delivered to them every morning and full reports every week plus access to a massive archive of data and previous reports.

For a free two week trial of Music Ally, sign up here. No strings attached – we promise!

 

Music Ally

Read More: News
Leave a Reply

(All fields required)