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BREAKING NEWS: Groupon to Go Public in Latest Major Social Media IPO | Mobile Marketing Watch

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Mobile Marketing Watch says: As widely anticipated, the social buying site Groupon is going public.

On Thursday, the company began the legal process with appropriate initial filings that will take the burgeoning brand to Wall Street.

The largest provider of online coupons plans to raise $750 million in an initial public offering, giving shareholders a potentially lucrative crack at the daily-deal market.

Investors have been fascinated with Groupon since the company turned down a reported $6 billion takeover bid from Google late in 2010.

If successful, Groupon’s IPO will be the second major digital brand to go public this year.

Just two weeks ago, LinkedIn’s IPO went much better than expected. On the first day of trading on Wall Street, shares of LinkedIn doubled in early trade.

LinkedIn priced its initial public offering at $45 a share the day before trading commenced. Twenty-four hours later, shares soared to $83 before topping off at $90. In the $90 range, LinkedIn’s value sits at roughly $8.5 billion.

Groupon, which will trade under the ticker “GRPN,” has tapped Morgan Stanley, Credit Suisse and Goldman Sachs as lead underwriters for the offering.

Despite high expectations for the iPO, it’s important to remember that Groupon still isn’t a profitable company relative to its grandiose expenses. And today’s filing by Groupon reflects that reality.

“We cannot be certain that we will be able to attain or increase profitability on a quarterly or annual basis,” the filing said.

via Groupon to Go Public in Latest Major Social Media IPO | Mobile Marketing Watch.


Written by Kees Winkel

June 3, 2011 at 16:59

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