Groupon IPO Better Hurry UP
Not long ago, news that Groupon had spurned Google’s $6 billion takeover bid was released and I couldn’t help but thinking that maybe Groupon had succumbed to pop-star diva mentality, where everyone except you and the flatterers you surround yourself with know that your future at the top is shaky at best. Later reports suggested that Groupon was worried that the deal might eventually be blocked by regulators and that the company would be left holding the bag after spending over a year in waiting mode. That makes more sense, but I still thought the clock was ticking. After that, reports suggested that Groupon raised more money to buy out early investors who wanted to cash out. Looks like I’m not the only one worried about the future. The main issue with Groupon is that the barrier to entry, or the so-called economic moat, around its business model is virtually non-existent. Sure, other small VC-funded startups might have trouble taking on the deal of the day website, but a well funded competitor would have no problem replicating what the company does quickly. Yesterday slammed home just how urgent the Groupon IPO is. Living Social, one of the Groupon competitors that …