Groupon features a daily deal on the best stuff to do, see, eat, and buy in Seattle and a variety of other cities across the United States.
Groupon Gets Cold Feet About Going Public
To IPO or not to IPO, that indeed is the question that Groupon has been sweating profusely over for the last few months. At stake is millions of dollars in funding, and potential profits—things Groupon has been short of as it tries to build a credible business.
According to reports, the daily deals giant is contemplating the timing of its IPO, and may not bring the company to market unless things settle down in the economy or the markets. Of course, putting off an IPO is nothing new, and tech companies for any number of reasons often postpone. But in Groupon’s case, the delay doesn’t stand up to the same level of scrutiny. It’s no secret that Groupon has been struggling to keep merchants happy for months—many have publicly expressed their dissatisfaction at the results they’ve received.
One wonders then, if the delay is not really due to the fact that Groupon feels ‘insecure’ as a business. If investors don’t feel confident that the Daily Deals business model is a worthwhile venture, they simply won’t put their money in it.
Canceling the planned post-Labour Day IPO may do more harm than good. Let’s face it, if Groupon isn’t ready now, when will it be? And even if you take into account the fact that Zynga has also canceled its IPO, Groupon still finds itself marching to the alter, with feet of ice. For Groupon to go public, investors must believe in the Daily Deals model. Right now, that is not the case, so let’s hope they can gain that confidence soon—for Groupon’s sake.
Do you think Groupon will ever go public? Let us know what you think in the comments below.