The Week: Most Recent The Digital Age:The Groupon Phenomenon recent posts.en-usWed, 13 Jun 2012 14:03:00 -0400http://theweek.com Recent The Digital Age:The Groupon Phenomenon from THE WEEKWed, 13 Jun 2012 14:03:00 -04007 peculiar new Groupon offers<img src="" /></P><p class="p1">Seemingly bored of its usual spa, restaurant, and bar offerings, the daily deals site Groupon is branching out into stranger areas of commerce. In recent months, the company has promoted a number of bizarre deals that have befuddled longtime users and caught the attention of the news media. Groupon is still struggling to recover from a disastrous IPO in late 2011&mdash; its stock has plunged&nbsp;62 percent&nbsp;&mdash;&nbsp;and analysts speculate that at least some of Groupon's forays into the weird are an attempt to drum up much-needed publicity. Here, seven strange new Groupon offers:</p><p class="p1"><strong>1. Name...</strong></p> <a href="">More</a>By The Week StaffWed, 13 Jun 2012 14:03:00 -0400Is Groupon primed for a comeback?<img src="" /></P><p class="p1">Groupon&nbsp;reported this week that its revenue jumped by 89 percent since last year, a better-than-expected result that surprised investors and sent the daily-deals site's share price climbing by&nbsp;16 percent. Groupon's stock had been declining ever since it launched its IPO in November, as investors soured on the company's poor earnings results and shady accounting corrections. Groupon was subsequently held up as the poster child for a burgeoning tech bubble, as over-exuberant investors had valued the company at close to $18 billion on its IPO &mdash; a figure that soon fell as low as $6...</p> <a href="">More</a>By The Week StaffWed, 16 May 2012 18:15:00 -0400Groupon's burst IPO bubble: 4 theories<img src="" /></P><p>Since Groupon's&nbsp;"gangbusters" IPO earlier this month, the daily deals site has fallen &mdash; hard. The company's IPO price was $20 per share, and the stock quickly climbed to $31.14 in its first day of trading. Now, shares have fallen below their initial offer price, with shares trading around $17, down about 12 percent from Tuesday. Groupon's financial problems &mdash; the company is bleeding hundreds of millions of dollars &mdash; are hardly a secret. But why exactly has Groupon's share price fallen so far, so fast? Here, four theories: <br /><br /><strong>1. Investors are worried about Groupon's competitors...</strong></p> <a href="">More</a>By The Week StaffWed, 23 Nov 2011 15:20:00 -0500Groupon's 'gangbusters' IPO: 4 takeaways<img src="" /></P><p>On Friday, after months of anticipation, Groupon finally went public. And even though recent filings have shown that the company is bleeding hundreds of millions of dollars, Groupon's stock&nbsp;opened at $28, up 40 percent from its IPO price of $20. The stock climbed as high as $31.14 before closing at $26.11. Of course, the daily deals site's first&nbsp;day on the Nasdaq has generated plenty of chatter. Here, four things people see in Groupon's&nbsp;"gangbusters"&nbsp;IPO:</p><p><strong>1. Groupon's IPO was the biggest since Google</strong><br />Groupon's IPO was priced at $20 per share, giving the company a market value...</p> <a href="">More</a>By The Week StaffFri, 04 Nov 2011 16:53:00 -0400Will Groupon's IPO save it?<img src="" /></P><p>Many tech darlings are holding off on their initial public stock offerings, hoping they can wait until the turbulent market becomes a bit more receptive. Not Groupon. After months of speculation, the daily-deals giant is going public on Nov. 4, seeking to raise as much as $540 million by selling off just 4.7 percent of its shares. Once an extremely promising web property, Groupon has fallen from grace in recent months, as filings revealed that the company is highly unprofitable and bleeding hundreds of millions dollars. Will an IPO help Groupon resume its meteoric rise?</p><p><strong>Groupon really needs the...</strong></p> <a href="">More</a>By The Week StaffTue, 01 Nov 2011 12:24:00 -0400Groupon's IPO delay: Is the tech bubble bursting?<img src="" /></P><p>With financial markets in turmoil, two of the internet industry's hottest properties &mdash; daily-deal site Groupon and social-media game developer Zynga &mdash; are putting off their initial public offerings of stock. The eagerly anticipated Groupon and Zynga IPOs were supposed to cap a boomlet for internet startups, but now skittish investors fear the companies are not worth as much as once thought. Is this a sign the tech bubble is about to pop?<br /><br /><strong>Bubble 2.0 is done:</strong> Investors were seeing "dollar signs everywhere" in the wake of LinkedIn's huge IPO splash, says <em>TelecomTV</em>, and Groupon's controversial...</p> <a href="">More</a>By The Week StaffThu, 08 Sep 2011 11:32:00 -0400Groupon's 'startling' reversal of fortune<img src="" /></P><p>In early June, Groupon filed paperwork to go public, reporting operating income of $60.6 million for 2010 and $81.6 million for the first quarter of this year. Then on Wednesday, the daily deals darling revised its earlier filing, following criticism that it used some rather unusual accounting practices to avoid mentioning the tremendous costs it had incurred building its base of subscribers. With those pesky expenses taken into account, the company reported a $420 million loss for 2010 and a $117.1 million loss for the first quarter of 2011. In the second quarter of 2011, Groupon had a record...</p> <a href="">More</a>By The Week StaffFri, 12 Aug 2011 17:28:00 -0400Should Groupon sell cars?<img src="" /></P><p>Groupon typically crowds users' email in-boxes with deals on massages and local restaurants, but this week, it dramatically upped the ante, offering members a discount on... a car! On Tuesday, Detroit Groupon users had the chance to buy a $199 coupon good for $500 off the purchase or lease of a new or used vehicle from <span id="articleText">LaFontaine Auto</span> dealership. Should Groupon offer up more deals on big-ticket items, or stick to spas and spaghetti?<br /><br /><strong>Cars aren't what Groupon customers want:</strong> Groupon's 80-million-plus users didn't sign up for cars, says Nicholas Jackson at <em>The Atlantic</em>. The company achieved its meteoric...</p> <a href="">More</a>By The Week StaffFri, 15 Jul 2011 12:37:00 -0400IPO jitters: Is Groupon 'effectively insolvent'?<img src="" /></P><p>As part of an IPO filing expected to raise $750 million, Groupon has released financial details that have caused much consternation in some corners of the tech world, and cast doubts on Groupon's success story. It turns out that Groupon spends a lot more money than it makes, has a pile of debt, and has used investment cash to buy shares from its founders. Do the "troubling trends" at Groupon spell doom for the daily deals service? Or are critics being unfair in slamming the company?<br /><br /><strong>Groupon is "effectively insolvent": </strong>Strictly in terms of sales, Groupon may be the fastest-growing company in American...</p> <a href="">More</a>By The Week StaffTue, 07 Jun 2011 14:35:00 -0400Groupon's 'hotly anticipated' $750 million IPO: By the numbers<img src="" /></P><p>After spurning a takeover offer from Google last year, Groupon has filed for a "hotly anticipated" initial public offering of stock that the company expects to raise $750 million. Though the social discount buying site has enjoyed a meteoric rise, the IPO will mark a huge milestone. Here, a brief look, by the numbers, at the latest internet startup to make it really, really big:<br /><br /><strong>$750 million</strong><br />Value of stock the company expects to sell in its IPO<br /><br /><strong>$6 billion</strong><br />Amount Google reportedly offered to pay for Groupon last year<br /><br /><strong>$1.4 billion</strong><br />Value placed on the company based on 2010 investments by venture capital...</p> <a href="">More</a>By The Week StaffFri, 03 Jun 2011 10:46:00 -0400Is Groupon's strategy doomed?<img src="" /></P><p>In less than 18 months, Groupon, the popular daily deals site, has won more than 700 million users and an estimated valuation as high as $25 billion. But some says its business model &mdash; offering deep discounts to users when enough of them want a deal, then splitting the profits with participating businesses &mdash; isn't sustainable, and doesn't make sense for the restaurants, spas, dentists, and other merchants that use Groupon. Fair criticism?</p><p><strong>Groupon is bad for businesses:</strong> "Groupon is just advertising, and fairly expensive advertising," at that, says Megan McArdle in <em>The Atlantic</em>. And...</p> <a href="">More</a>By The Week StaffThu, 12 May 2011 11:34:00 -0400Groupon's risky future<img src="" /></P><p>Barely two years old, Groupon has quickly become the tech world's latest crush. It grossed a reported $760 million in 2010 (<em>way</em> up from $33 million in 2009), turned down a $6 billion dollar offer from Google last December, and is now in talks to go public with a valuation as high as $25 billion. But the daily deal site has had a rough few months. Revenue was reportedly down 30 percent in February and 32 percent in March; Groupon's president and COO, Rob Solomon, is on his way out; and a "tasteless" Super Bowl ad led to a slew of negative publicity. Are Groupon's best days, and deals, behind it...</p> <a href="">More</a>By The Week StaffTue, 29 Mar 2011 11:57:00 -0400Is Groupon really worth $25 billion?<img src="" /></P><p>Groupon is fast becoming one of the most explosive startups in tech history. The online coupon vendor recently spurned a $6 billion takeover offer from Google, and now it is reportedly talking with Goldman Sachs about a possible initial public offering of stock valuing the company at $25 billion &mdash; higher than Google was priced in its 2004 IPO. Groupon's rapid success has sparked an explosion of competitors, including LivingSocial. Is Groupon, which was only launched in 2008, really worth that much? (Watch a Bloomberg discussion about Groupon's value)<br /><br /><strong>It very well could be:</strong> Groupon has dominated...</p> <a href="">More</a>By The Week StaffFri, 18 Mar 2011 11:40:00 -0400Will 'Groupon remorse' cool the fever for online deals?<img src="" /></P><p>Bargain hunters are flocking to Groupon, LivingSocial, and dozens of other group coupon-buying websites. In fact, customers are snapping up deals &mdash; on everything from spa treatments to restaurant meals to rafting trips &mdash; so fast that they don't have time to use 10 to 20 percent of the coupons before they expire. <em>The Boston Globe</em> calls it "Groupon remorse," and says it is so common that it has given rise to a new breed of website where buyers can sell their unused bargains, often at a loss. Will Groupon remorse bring the soaring popularity of daily deal sites back to Earth?<br /><br /><strong>Yes, customers...</strong></p> <a href="">More</a>By The Week StaffThu, 10 Mar 2011 14:43:00 -0500The latest tweets on 'Groupon'</P><div class="twitterBlock"></div> <a href="">More</a>By The Week StaffSat, 26 Feb 2011 12:00:00 -0500Groupon's 'tasteless' Super Bowl ad: Smart move?<img src="" /></P><p>Groupon, the online coupon firm, has been savaged for airing a series of Super Bowl commercials that spoofed humanitarian concerns. In the most groused-about spot (watch it below), actor Timothy Hutton soberly highlights the plight of the Tibetan people &mdash; before glibly noting that they "still whip up an amazing fish curry," which Groupon users can enjoy for a special price. On the Groupon blog, CEO Andrew Mason said the goal was to "make fun of ourselves," not to trivialize the causes. Meanwhile, branding experts said the outcry could give Groupon a massive boost in name recognition. Is such...</p> <a href="">More</a>By The Week StaffWed, 09 Feb 2011 14:10:00 -0500