I think that selling at a $6B valuation makes complete sense.
It seems to me that if 40-50% off coupons were the magic key to retail success, they'd have been discovered by retailers already.
Groupon's coupons have already been getting worse... more of the "Get $50 worth of x for $25" which is not all that compelling if the overall purchase will be $100+.
Groupon has done a brilliant job of marketing, but I don't think it's sustainable as is. Groupon clearly has a superb sales team and genius marketing, but if I were an investor I'd want to cash out now, even at a $1B valuation.
I think it makes a lot of sense as an investor to cash out with such a high valuation. Especially if this is a bubble that ends up bursting the in next few years.
However part of me wonders if this isn't a bubble, what will Groupon look like and be worth in 5 years.
True. It is possible. I'd make the following points against it:
- Facebook knows where you live too.
- Yelp is also copying groupon..
- There would seem to be little chance that the deals could remain all that great for long, especially if they don't lead to repeat business and loyal customers.
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[ 2.7 ms ] story [ 30.9 ms ] threadIt seems to me that if 40-50% off coupons were the magic key to retail success, they'd have been discovered by retailers already.
Groupon's coupons have already been getting worse... more of the "Get $50 worth of x for $25" which is not all that compelling if the overall purchase will be $100+.
Groupon has done a brilliant job of marketing, but I don't think it's sustainable as is. Groupon clearly has a superb sales team and genius marketing, but if I were an investor I'd want to cash out now, even at a $1B valuation.
However part of me wonders if this isn't a bubble, what will Groupon look like and be worth in 5 years.
- Facebook knows where you live too.
- Yelp is also copying groupon..
- There would seem to be little chance that the deals could remain all that great for long, especially if they don't lead to repeat business and loyal customers.