Tag Archives: Groupon

What’s Wrong with Groupon?

By James Kwak

Groupon plans to go public later this week. According to the latest leaks, things are going well: the IPO valuation, scaled back from $30 billion to about $12 billion, may be raised because of a successful road show. Apparently even after the company conceded that the amount they pay to a merchant does not count as revenue, investors have decided they like what they see.

But there is still something fishy about Groupon’s business model.

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