Groupon to Investors: Just Ignore Our Accounting, SEC Violation, and Competitors
Group coupon giant Groupon is preparing to go public in late October or early November with a newfound confidence that market conditions have improved. Groupon had to delay presentations to potential IPO investors early this month after markets got rocky and the SEC said the company was literally inventing new accounting terms to hype business activity. The company was also in hot water for a leaked memo during the SEC quiet period.
Super Hot Feature: Half of All 2011 IPOs Are Underwater.
“The restart on the I.P.O. process is being driven in part by a resolution between the company and the Securities and Exchange Commission over a memo from Groupon’s chief executive to employees that promoted the company’s business performance, the people said. The memo soon became public, raising concerns that the company had violated S.E.C. rules restricting corporate information before an offering to its prospectus,” according to Dealbook.
The resolution of the leaked memo means Groupon can file another revision to its IPO plan, including performance figures from August. Worried the issue will hurt the company’s stock? Don’t. Google (NASDAQ:GOOG) had a similar snafu in 2004 which also violated SEC rules … and they did just fine.
Revenue in the U.S. from online discounts will top $4.2 billion by 2015, BIA/Kelsey said, up from its previous forecast of $3.9 billion, reflecting the continued surge in daily-deal companies and subscribers. However, you may want to check out the army of companies encroaching on Groupon’s barrier-less market: Living Social (NASDAQ:AMZN), Google Offers (NASDAQ:GOOG), Yahoo Deals (NASDAQ:YHOO), City Search (NASDAQ:IACI), Wow (NYSE:AOL), Woot, Gilte, and millions upon millions more.