Saturday, June 4, 2011

Sell short? Groupon Plans I.P.O. With $30 Billion Valuation -

Groupon Plans I.P.O. With $30 Billion Valuation -

Why so valuable? The brand means little. They have no meaningful IP. Sites with similar functionality cost a couple hundred dollars. What makes their position defensible? Their are few if any network externalities. Their is little learning curve for consumers and duplicators. They don't make money.

For some perspective, here are some other companies worth about $30 billion each: Fedex, Praxair, Panasonic, Prudential Financial, and Corning. Is it worth 10% of Apple or 75% of Ebay?

Pitney Bowes, Legg Mason, H&R Block, Advance Auto Parts, PetSmart, and Sunoco have a combined value of under $30 billion. What would you rather own, these six or Groupon?

No comments:

Post a Comment