Shortly after rejecting Google’s $6 billion buyout, Groupon could potentially acquire up to $950 million by selling off preferred shares. VCExperts reports that on December 17, the company filed a 22-page document with the state of Delaware to authorize Series G funding, which could bring Groupon’s worth between an estimated $6.5 and 7.8 billion. The document states that Groupon amends its certificate of incorporation, and can thereby issue approximately 30 million shares of Series G preferred stock for $31.59 a share.
The site also speculates that this money could be used to finance Groupon’s international expansion. The daily deals site has made no secret about its plans to develop in Asia, and this round of funding would undoubtedly help with expenses.
CEO Andrew Mason confirmed the report, saying via Twitter that “Groupon is in the process of completing a new round of financing.” Bloomberg reports that the CEO is considering “an initial public offering in the new year,” and in more development for the company, has hired former Amazon VP of finance Jason Child as its CFO. Bold steps for a startup that was purportedly considering selling itself to Google weeks ago. Bloomberg claims that sources close to the situation say the deal went sour because Mason feared it “would sap employee morale and alienate business clients.”
Whatever the reason, it appears Mason made the right decision. If Groupon’s funding sees its full potential, it will soon be valued more than Google’s $6 billion offer. And any significant growth for the company means it could also exceed its estimated $2 billion in annual revenue for 2010 in 2011.
If Groupon goes IPO the shares would become publicly traded stock. The jury is still out on how seriously the company is contemplating this option. VCExperts claims that Mason’s investment in overseas expansion signals resistance to IPO plans, but various reports maintain that it is still a possibility and one that Groupon will continue to mull over in the coming year.