Groupon preparing for IPO?

The daily discount site is clearing the way to raise almost $1 billion in investor financing.

By Kim Peterson Dec 30, 2010 1:04PM
Pile of cash © CorbisPerhaps now we know why Groupon spurned Google's (GOOG) $6 billion offer this month. The company could be looking to go public.

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.

Tags: internet
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

113
113 rated 1
279
279 rated 2
416
416 rated 3
647
647 rated 4
548
548 rated 5
513
513 rated 6
669
669 rated 7
516
516 rated 8
317
317 rated 9
113
113 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
UPLULTRA PETROLEUM Corp10
TAT&T Inc9
COPCONOCOPHILLIPS9
DVNDEVON ENERGY CORPORATION9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.