Skip to main content

Groupon files to raise $175M in IPO

grouponJust yesterday, Groupon CEO Andrew Mason took the stage at the D9 conference to talk with All Things Digital’s Kara Swisher. Mason took a few jabs at Google Offers, commented on the Groupon clones out there, and very much avoided talking about the company’s looming IPO. After Swisher persistently grilled him on the topic, he told her to switch topics as he had nothing but “bullshit answers.”

But Mason should now be prepared to talk about nothing but a Groupon IPO, as the company has filed an S-1 form with the SEC. At the beginning of May, it was reported that the deal-a-day originator was in a rush to go public. Nearly a month later, Morgan Stanley is leading the way as the company seeks to raise $175 million in an IPO.

Recommended Videos

The timing seems right. The company was recently valued at around $20 billion, and as criticisms pile up and oversaturation reaches a new high, Groupon is ready to see some of that money. There’s also the matter of big name competitors like Google, Amazon, and Facebook throwing their hats into the daily deals ring even as LivingSocial becomes an increasingly able challenger. Now, Groupon is poised to reap the rewards of its innovation.

In a blog post, Groupon simply offers up its “yawn-inducing” press release and thanks visitors for caring about the company. According to said press release, “the number of shares to be offered and the price range for the offering have not yet been determined. A portion of the shares will be issued and sold by Groupon, and a portion will be sold by certain stockholders of Groupon.” Of course, what its S-1 reveals is far more interesting:

  • 2011 first quarter revenues reached $644.7 million.
  • In 2010, Groupon generated free cash flow of $72.2 million.
  • The company admits it is seeing strong competition from the likes of Facebook, Google, and Microsoft (Bing).
  • As of March 31, Groupon had $208.7 million in cash and cash equivalents.
  • Groupon wants to invest in expanding its sales force, grow domestically and internationally, and possibly even acquire “complementary businesses.”
  • The company lost $413 million in 2010.
  • Mason’s salary this year? $575. That’s only because of selling a mass amount of stock – in 2010 he took home $180,000.
  • Who owns most of Groupon: Mason owns 7.7-percent, Robert S. Solomon (founder, former president and COO) owns 6.8-percent, Bradley A. Keywell (founder) owns 6.9 percent, and Eric P. Lefkofsky (founder, executive chairman) owns 21.6-percent.

Groupon lovers shouldn’t worry the site is going to undergo drastic change. In the SEC filings, a personal letter from Mason explains that “While we’re looking forward to being a public company, we intend to continue operating according to the long-term focused principles that have gotten us to this point.” This includes, according to Mason, the quirky Groupon attitude: “We are unusual and we like it that way…life is too short to be a boring company.”

So is this just one more indication that we’re in the throes of an IPO wave? Earlier this year we listed a number of social media companies that were rumored to be going public and we’re currently four for six: LinkedIn, Pandora, Zynga, and now Groupon have all filed their S-1 forms.

Topics
Molly McHugh
Former Digital Trends Contributor
Before coming to Digital Trends, Molly worked as a freelance writer, occasional photographer, and general technical lackey…
How to deactivate your Instagram account (or delete it)
A person holding a phone with the Instagram app open on it.

Oh, social media. Sometimes it’s just too much, folks.

If you’re finding yourself in a position where shutting down your Instagram account for a period of time sounds good, the people at Meta have made it pretty simple to deactivate it. It’s also quite easy to completely delete your Instagram, although we wouldn’t recommend this latter option if you plan on returning to the platform at a later date.

Read more
Bluesky finally adds a feature many had been waiting for
A blue sky with clouds.

Bluesky has been making a lot of progress in recent months by simplifying the process to sign up while at the same time rolling out a steady stream of new features.

As part of those continuing efforts, the social media app has just announced that users can now send direct messages (DMs).

Read more
Incogni: Recover your privacy and remove personal information from the internet
Incogni remove your personal data from brokers and more

Everything you do while online is tracked digitally. Often connected to your email address or an issued IP, trackers can easily identify financial details, sensitive information like your social security number, demographics, contact details, like a phone number or address, and much more. In many ways, this information is tied to a digital profile and then collated, recorded, and shared via data brokers. There are many ways this information can be scooped up and just as many ways, this information can be shared and connected back to you and your family. The unfortunate reality is that, for most of us, we no longer have any true privacy.

The problem is exacerbated even more if you regularly use social media, share content or images online, or engage in discussions on places like Reddit or community boards. It's also scary to think about because even though we know this information is being collected, we don't necessarily know how much is available, who has it, or even what that digital profile looks like.

Read more