Friday, November 4, 2011

Wholly Cheese Batman, Groupon IPO

I think this is the largest IPO I've seen since maybe Google. I did not expect this and had no idea Groupon was quite that big. I'm still trying to get my head around which is why I'm posting this.

My question is simple "Does Groupon have a bright future and is it worth investing in?"

I was pretty down on Groupon when the Missus bought a Groupon for a local restaurant and the restaurant didn't honor the Groupon. We read through the fine print and they will refund your money for any reason. Not all the other competitors will do that. I'm not sure of the legalities of not refunding because you could call your credit card company, but they were really good about the refund so I'm less down on them. Needless to say the Missus has the Groupon app, watches for deals and buys deals that we would ordinarily buy or that look really fun. Maybe that is the customer base, I'm not the person they are targeting.

So is Groupon the next Google? I wouldn't have imagined they are, but then again the business model of grabbing loads of customers, making them addicts, and then leveraging that with other services seems to be a model that has worked before (Amazon, ebay, Google, Yahoo to name a few).

There are a few other similar services out there but Groupon has the household name just like Xerox and a number of other things out there. So that's a huge plus. The question is what will Groupon do with that $700 million? If they can expand and provide unique things such as unique opportunities to see behind the scenes at a making of the next Batman movie then I think they have some serious potential. is another competitor that offers a monthly subscription to get discounts. Seems odd to me, but it seems to be working for them.

So do you have any insight into Groupon that I don't? Have you plunked down some cash to get in on the action or are you just and avid Groupon addict?

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