Feeds

Groupon IPO back on the cards

Have we got a deal for you! Coupons for Groupon

Top 5 reasons to deploy VMware with Tegile

Groupon's IPO is back on track for late October or early November after a short-lived delay earlier this month.

The daily deals site had cancelled its roadshow – the part of the process where it goes around trying to get people interested in buying its shares – which was due to take place this week. The cancellation prompted speculation that the IPO was at least delayed, if not cancelled.

But people briefed on the matter told the New York Times that the coupon company was now aiming to go public at the end of October or start of November, after being delayed partially by an issue with the Securities and Exchange Commission (SEC) and partly by the volatile markets.

A Groupon spokesperson told The Reg that the company could not comment on the IPO.

The potential stumbling block with the SEC was a leaked email from Groupon CEO Andrew Mason to his employees, because it came during the company's quiet period – the time before going public where it's not allowed to say anything that might affect its share price.

Mason did just that in an email where he went mental at critics who had called into question Groupon's financial metrics, in particular the Adjusted Consolidated Segment Operating Income (ACSOI), which gave revenues before marketing and acquisition costs were deducted. Some pundits suggested that, because Groupon spends a whole heap of its money on marketing, putting it hundreds of millions dollars into the red, the metric was meant to disguise the fact that the business model wasn't working.

Mason took strong objection to this suggestion in his email and said a lot about how well the company was doing, pretty much exactly what you're not meant to do during the quiet period.

However, the SEC could let the IPO go ahead if Groupon files a revision to its prospectus that includes the details of the email and the company numbers that support its claims.

Volatile markets – ie, ones that are swinging all over the place and mostly ending up falling – have put off a lot of IPOs in this year because companies don't want to go public in an atmosphere that will see its shares drop irrespective of the company's worth. However, Mason may decide that a continued delay to the IPO is as damaging to the stock as a bad economic climate and go ahead with the offering – after clearing things up with SEC, of course. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.