Groupon is the latest online media company to leap onto the IPO bandwagon. The firm will go public in a $750m IPO later this year, underwritten by some of the world’s leading investment banks.
Groupon has shot to success over the past year on the back of the ever-growing deals market, which Groupon itself helped to create. For the full year 2010, the company had revenue figures of around $700m, but almost matched that in the first quarter of 2011 alone, suggesting that growth over the past year has been exponential. However, it’s believed that the company is not currently profitable.
Some analysts worry that there is a massive tech bubble brewing, and that eventually that bubble will burst. LinkedIn recently launched an IPO and Facebook is widely expected to do the same at some point. But are the huge prices being quoted sustainable?
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