Groupon's IPO Problems
An internal memo from Groupon's CEO to his employees seems to be the culprit.
Tired of reading bad news about his company, he wrote to them answering to the entirety of the negative commentary they had read daily in the news, both on and off-line. Not good.
The American SEC takes what they call the pre-IPO "quiet period" very seriously and has asked them to answer a lot of uncomfortable questions. The biggest problem that GROUPON has now is answering to those accusing them of configuring a PONZI scheme that will not last.
My concern with a model that has been able to grow and generate so many jobs, rather thanprosecuting them for it, is to ask myself to what degree the traffic that they generate -and that is proven- toward one of their vendors will be sustained over time and compensate the business with mid- and long-term clients.There are those who say the "full price" world has ended and we should get used to large business generators, which will be the groupons of the future and that everyone will be look for more and better deals when they want to make a purchase.
This may be, but I think it is difficult to make clients out of them.What do you think?
