Thursday, January 13, 2011

Groupon May IPO At $15 Billion Plus

Andrew Mason, Groupon

Groupon is being pitched by bankers to do a $15 billion to $20 billion IPO, the New York Times reports. That's more than 10 times the valuation rumored earlier today, and two to three times the amount Google offered for the company a month ago.

The company just raised close to a billion dollars from a bunch of investors including Kleiner Perkins, Andreessen Horowitz, and Greylock, and rumors emerged earlier this week that the company was talking to bankers about a possible IPO as early as this spring. 

Given the insane valuations of other pre-IPO Internet companies lately -- Facebook at $50 billion, Twitter at $3.7 billion, and Travelzoo at $400 million only four months after launching a Groupon-like daily deals service -- it's reasonable to talk of a bubble. That said, Groupon has grown incredibly fast, and is estimated to be pulling $2 billion a year in revenue after only three years in business.

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Groupon May IPO At $15 Billion Plus


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