I am still trying to get my arms wrapped around how a social media start up walks away from $6 BILLION…that BILLION. Based on Groupon’s supposed revenue of $350m that would be a 17x multiple of revenue…wow. Throw in the valuation of over $1b and that is a 5x multiple, common place during the good ole days, not something you really want to walk away from in today’s market.
I am sure that Groupon and its founders want to keep plugging away with their idea and business, good for them. However I wonder what exit strategy they are communicating to employees and investors…we are going public and getting more than $6b? Facebook will buy us for $10b? The deal would have gone down as one of the biggest deals in business history….but that and $4 gets you a cup of coffee at Starbucks.
Wonder if Groupon will look back at these days with regret or will they prove us wrong? Either way it will make for an interesting story! But must have been interesting when Sergey and Lawrence got the call that the $6b offer was going to be turned down…wow.