Groupon in $950M funding round

Google reportedly tried and failed to buy Groupon a few weeks ago

Groupon is in the midst of a $950 million funding round, weeks after it reportedly rejected a US$6 billion acquisition offer from Google.

Groupon has already raised about $500 million in this latest funding round, and expects to sell another $450 million in shares to investors, according to a document filed on Thursday with the U.S. Securities and Exchange Commission (SEC).

About $345 million of the money will be used as payments to executive officers, directors and promoters of the privately-held company, which was launched in 2008.

The funding round could put Groupon's valuation at close to $8 billion, according to the venture capital news and information site VCExperts.com, which first reported on the new funding round on Tuesday.

Chicago-based Groupon declined to comment.

In early December, Google and Groupon reportedly reached advanced negotiations for the search company to buy the online coupon distributor. However, Groupon walked away from Google's reportedly $6 billion offer.

If the deal had gone through, it would have been Google's biggest acquisition to date, which made industry observers question whether the price was too elevated for a business that is already being mimicked by many competitors, including LivingSocial.

Groupon teams up with local merchants to offer deep discounts on their products. The twist is that a minimum number of Groupon members must commit to the deals before they become valid.

Groupon takes a commission from each deal. It has sold more than 18.1 million coupons so far. It employs about 3,000 staffers in the U.S. and abroad.

It raised $135 million in its latest funding round in April. Financial analysts forecast Groupon will end 2010 with about $500 million in revenue.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags GoogleGroupon

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?