ipl-logo

Groupon Executive Summary

758 Words4 Pages

Groupon IPO
Groupon is an E-Commerce marketplace connecting buyers and sellers by offering discounted products. It operates in two segmens: North America and International. The company features daily deals to its subscribers
Groupon enable consumers to purchase vouchers for goods and services directly from its website, social networks and its mobile application for android, iphone, windows and blackberry phones.
In December 2010, the Company partnered with Redbox to offer a daily deal to their user base and it acquired over 200,000 new customers through that offer and in March 2011, it partnered with eBay to offer a daily deal to their user base and it acquired over 290,000 new customers through that offer.
Groupon competes with Google, Microsoft, …show more content…

Fills S-1 form with SEC.

July 27: Filing comes under scrutiny from the Securities and Exchange commission for unusual accounting metrics called "Adjusted Consolidated Segment Operating Income.
The method calculates revenue without first debiting expenses like marketing and advertising.

September 6: Groupon announces IPO amid volatile stock market and growing scrutiny from the SEC.

September 25: Groupon's chief operating officer bruptly left Groupon, becoming the second COO to leave the company in just six months.

October 7: Groupon revises its S-1. It clarified its new accounting metric, called "gross billings," which is essentially the total revenue the company collects from consumers before remunerating vendors.

Ipo
Groupon priced its IPO at $20 a share on November 4, 2011.
It values Groupon at $13 billion, and nets the company around $700 million of much-needed working capital. It listed itself on the Nasdaq, under the ticker GRPN.

Groupon's underwriters hiked its offering price from $16 to $18 and added another 5 million shares, up from the previous offering estimate of 30 million …show more content…

Under pressure from regulators, it re filed in August to instead use only standard accounting procedures. As a result, the operating profits that Groupon cited in its first filing became operating losses.
In late September, the compay revised its reported revenue to "correct for an error" effectively reducing its sales to half of what it claimed previously. The unprofitable company owed almost twice as much to merchants at the end of September as it held in cash, and its marketing costs rose 37 percent in the latest quarter.

Investment Banks
Morgan Stanley worked with Goldman Sachs and Credit Suisse Group AG to fetch a valuation of about $12.7 billion, 11 % higher than targeted.
Low Float
Groupon surged as much as 56 % in its trading debut. The company raised $700 million, compared with the $540 million they filed to raise Oct. 21. The shares rose $6.11, or 31 percent, to close at $26.11.
The company offered a smaller percentage of shares than typical in an IPO. It had planned to offer 4.7 % of its stock, less than in any U.S. Internet-company IPO of more $200 million since at least 2000.
This model of the low float creating its own demand has

Show More
Related
919 Words | 4 Pages

If GLC had changed the pricing after both parties had signed the contracts, then this would be a serious violation and should be bought to audit and compliance, for a full

Read More
777 Words | 4 Pages

It says Verizon invested 78.3% in their network equipment, 12.1% in land, buildings and building equipment and 9.6% in furniture and others. Furthermore, their Form 10-K shows their lowest and highest stock prices per share for 2017. They were $47.80 to $54.83 for the first quarter, $44.36 to $49.55 for the second quarter, $42.80 to $50.32 for the third quarter and $43.97 to $53.69 for the fourth quarter. The Form 10-K also lists all of Verizon’s Directors, Executive Officers and Corporate Governance. Lastly, it breaks down Verizon’s operating expenses and net income from 2013-2018 and there was a steady increase in net income from 2015-2017.

Read More
1638 Words | 7 Pages

Verizon Communications Stock Overview Over the ten years from 2010 to 2020, Verizon's stock price experienced some difficulties but overall trended upward. The stock started the decade at $31.19 and ended at $58.20, representing an 87% increase. Factors contributing to this upward trend include Verizon's investments in 5G technology, its acquisition of Yahoo! and AOL to bolster its media and advertising businesses, and its ability to maintain strong customer retention and grow its subscriber

Read More
1229 Words | 5 Pages

The current price for one Verizon Communication Inc. stock is 45.23, which is up by .31 at a .69 percent increase, also the day’s range is 44.83-45.39. In the last year the high was 50.86 and the low of last year was 38.06. The earnings per share for Verizon Communications is 2.49 and the price to earnings ratio is 18.15. Reviewing the price chart on the New York Stock Exchange web page, the highest price of the year was in April, and the lowest price of the year was in October, though it seems to be rising as of now.

Read More
852 Words | 4 Pages

The initial share price is proposed at $3.00, though this may be adjusted at pricing based on market response. Full exercise of the over-allotment would bring the post-IPO share count to 46.7 million. The IPO's net proceeds, estimated at $4.7 million or $5.6 million with over-allotment, are slated for executive loan repayment and enhancing inventory and workforce. Directors, officers, and significant shareholders will face a six-month lock-up period after the IPO. 4.

Read More
507 Words | 3 Pages

Dependence on speedy Customer Growth for Revenue Growth: Groupon in this many years have failed to provide net positive incomes. As well as the subscribers rate has decreased rapidly. Till this many years Groupon was able to maintain positive net income by having rigorous expansion in to the new markets, but this strategy won't be helpful in the long run as competitors may explore those markets as well. Hence Groupon should find new ways to increase the profitability in the markets they are by providing differentiation. Lack of Differentiation:

Read More
823 Words | 4 Pages

As of today Northrop Grumman’s stock is up at $217.45 and a volume of 757,449. Northrop Grumman’s mission is to be at the forefront of technology and innovation, delivering

Read More
1325 Words | 6 Pages

It became a real competitor for technology all over the world when its stock reached $100 million dollars in 1997. It increased even further and reached $250 million dollars in net worth by 1999 further cementing its place in the world as a global tech monarch. Finally the company reached its peak reaching $2 billion dollars in net worth by 2011 and by doing so it truly

Read More
1370 Words | 6 Pages

Groupon a Chicago-based company, offers discounts through quantity purchase and is the predecessor to the Point website founded by CEO Andrew Mason. Mason and his team launched Groupon in November 2008 using the framework from The Point concept. Their aim was to help metropolitan inhabitants obtain affordable goods and services without overpowering them by the utter number of choices. Groupon first offered one deal per day, in 2009 and 2010; Groupon was experiencing a rapid growth and soon serving over 150 markets nationally and throughout 100 additional markets transnationally.

Read More
630 Words | 3 Pages

In response to the release of the app Pokémon Go on July 6th, Nintendo has experienced massive rises in stock price. Stock price jumped from $14,660 per unit of stock (July 1, 2016) to a $31,770 high on July 19th. Comparatively, 441.1 thousand shares were traded on the 1st and 220.66 million were traded on the 15th. For reference, Nintendo has a 5-year average of

Read More
1682 Words | 7 Pages

Martin Luther King, Jr. once said in his “Letter From a Birmingham Jail”, “Time itself is neutral; it can either be used destructively or constructively... Human progress never rolls in on wheels of inevitability. It comes through the tireless efforts of man... We must use time creatively in the knowledge that time is always ripe to do right.” King is absolutely right, here; in order to make any progress or improvement, one needs to use time correctly in order to get a positive response.

Read More
1609 Words | 7 Pages

Heidi Jewett Professional Communications Professor Casey 10 December 2014 Google, is one of the most well known companies not just within the United States but worldwide. The company was created in 1998 through a project at Stanford University, and in just 16 years has grown to a company with revenue of over $59.825 billion dollars. Google focuses in online and Internet related products and services. Google is most recognized for their search engine capabilities but is also involved with, and has ownership of, other well-known Internet sites such as YouTube and Blogger. As of 2013, the Google company, has grown to over 70 companies located in more than 40 countries.

Read More
3388 Words | 14 Pages

At the end of the day, Under Armour became the first American based initial public offering to double on its first day of trading, in 5 years. About 12 million shares were sold allowing Under Armour to generate $157 Million. Under Armour continued its steady assent the following years and in 2010 accomplished an incredible milestone of $1 Billion in annual

Read More
1397 Words | 6 Pages

Groupon is an online service that delivers coupons to consumers through a middleman service that deals directly with local businesses. They offer deals approved directly by the business and split the profits from said deals evenly. An example to illustrate would be buying a bowling pass for $20. Split 50/50, Groupon and the bowling alley would each receive $10. The service is offered for all kinds of businesses and isn’t limited to services and is applied to goods that are being sold at a discounted rate as well.

Read More
850 Words | 4 Pages

Profits came in slightly above its earlier estimate, at 7.39 trillion, or $6.45 billion, up a

Read More

More about Groupon Executive Summary

Related Topics

Open Document