Groupon preparing for IPO?
The daily discount site is clearing the way to raise almost $1 billion in investor financing.
Groupon, the discount-deals site, is negotiating financing commitments with some of the biggest names on Wall Street, The New York Times reports. The company is preparing to go public as soon as the end of next year.
The Wall Street Journal reports that the financing under discussion could run as high as $950 million. That's because Groupon wants approval to sell as many as 30.1 million preferred shares of stock at $31.59 each.
An IPO also seems more likely now that Groupon went and got itself a chief financial officer. It hired a former vice president of finance at Amazon (AMZN). Post continues after video:
Just because Groupon wants approval for this financing round doesn't mean it'll go after the entire $950 million. It's just clearing the way for the money to come in.
But if the financing does go through, Groupon's valuation could be as high as $7.8 billion, the Journal reports. That makes Google's $6 billion bid seem awfully low.
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The stock is expensive and the guidance is weak -- not an appetizing combination.
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