The possible stock market listing of Groupon seems to have been delayed due to current market turmoil, although the IPO is still on the table.
This are fluctuating times or Groupon – the grouped purchase site, who was planning on an initial public offering to raise 750 million dollars, with the stock market listing to value the company at more than 20 billion dollars.
While the company already lodged their application with the (Securities & Exchange Commission) in June, they have already been criticised by some for their economic model and current and future profitability.
This has led their CEO, Andrew Mason, to react in August through a memo addressed to his employees, where he denounces the various criticisms of the company which regularly appear in the press. But with the current unstable stock market conditions, that the groups is taking things cautiously.
A stock market is listing is still on the cards According to the Wall Street Journal, Groupon has decided to delay their stick market listing, initially planned for early September, until the global economy improves. At this time, it is simply the date which has been pushed back, with the listing not cancelled, but it does mean the company is no longer racing towards the stock market like other web companies.
In August, another potential IPO – that of social network games editor Zynga was also delayed. After a reasonably successful initial phase of company’s listing, including professional social network LinkedIn, it now appears others prefer to watch and wait, anticipating an eventual (ad highly anticipated) listing for Facebook.
But Groupon has to also confront criticism from the SEC. Already asked for comment on their use of unusual performance indicators, Andrew Mason’s memo – which was provided to the press, provided financial indications about the company which broke the silence imposed on it before any stock market listing.
Groupon lay have decided to delay their stock market listing to let the "negative" vibes pass so as to not scare away investors and future shareholders. We will now have to see if the stock launch of Groupon will be the start a new series of listings.