Having turned down a huge bid from Google it seems that Groupon are now firing up with a massive fund raise.
"Groupon filed a request with Delaware authorities to raise as much as $950 million by offering preferred shares, The Wall Street Journal reported."
We all thought Groupon were nuts to turn down Google and that they should have taken the money.
Having so publicly declared and demonstrated their independence they now need big funds to defend their territories and to grow. It's not going to be easy. Competition is growing from a raft of players that include newspapers who scent an opportunity for themselves in the Groupong model. And then they is Google who having been rebuffed are unlikely to sit idly by and let Groupon succeed. And lastly there is the growing negative buzz that surrounds Groupon. Merchants and customers who have had a poor and unprofitable experience are increasing vocal.
Sure all makes for an interesting story in 2011.
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