Groupon the darling of the social media buyer groups listed this month and it has been a bust. The stock is now trading at a substantial discount to the IPO. Granted the market has been crap but Groupon has been crappier
I have written about this phenomena before and the questionable strategy of Groupon not taking the $5.3 billion that was offered by Google. My feeling is that this was one of those once in a lifetime deals that has now past since the market has given a firm valuation to Groupon and by extension all other companies in this field.
This now makes James Packers decision to drop $40 million into Scoopon the domestic equivalent of Groupon not that clever. Although I am certain that Packer would not worry too much about dropping $40 mil.