Groupon Up For Sale

I remember my girlfriend Ruth telling me she thought the founders of Groupon, the leaders in daily deals on the Internet, were nuts because they turned down a $6 billion buyout from Google just a few years after they started. I agreed with her. We had a good laugh about how greedy they were.

A year later they were worth $16 billion after a 2011 IPO, which was the second largest for a tech company during those years. Ruth and I stopped laughing. We should have started crying that we weren’t the ones who came up with the idea. Ruth became a big Groupon customer. She always included us in the fun activities she bought. To this day, she and her husband Howard, are always going to amazing events that were presented on Groupon.

That’s why I was so startled when I read that Groupon was putting itself up for sale. Recode, a leading tech site, announced the sale. I later learned that Groupon is now valued at just $2.4 billion.

It doesn’t make sense that a very successful and popular company suddenly starts to go sour. I often wonder why it’s so easy for an entrepreneur to start a business but not as easy to keep it going forever?

For clues to what went wrong with Groupon read Recode. Click here.

2 thoughts on “Groupon Up For Sale

  1. When we arrived in NYC in 2005, we ran into an online company, Vintage Vines, that gave great discounts at restaurants all over the city that they listed in their weekly or biweekly emails. We would eagerly read the reviews and try out these restaurants in all corners. You could dine at some of the best restaurants in NYC with a great discount.

    At some point, the company changed names, it merged or was bought by another company, Savored. They continued in the same way to have great discounts at a variety of restaurants all over Manhattan, including Le Cirque! We loved it! They sold themselves to Groupon at some point. We miss it and Groupon is too big.

  2. not really a surprise, it was a bad business model because Groupon followers only buy when they get a steal, they are never repeat customers

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s