Groupon has filed its S-1 and hopes to raise $750M in its initial
public offering. Given they’re currently losing a staggering
$117M per quarter, despite revenues of $644M, they’ll be burning
through that cash almost as soon as it hits their account.
At the moment, it’s costing them $1.43 to make $1, and it
doesn’t look like it’s getting any cheaper. They’re already
projected to make close to three billion dollars in revenues this
year. If you can’t figure out how to make money on three billion
in revenue, when exactly will the profit magic be found? Ten
billion? Fifty billion?
I feel like the Groupon IPO is an elaborate practical joke.