As Groupon’s Fortunes Shift, Chicago Sticks By It

By Connie Loizos — 4 years ago

Not long ago, the daily deals giant Groupon was the toast of Chicago, a press darling that received the blessing of Oprah Winfrey, was commended by Forbes as the “fastest growing company ever,” and even reportedly spurned a multibillion-dollar buyout offer from Google. A Chicago Tribune headline from last December summed up its place in […]

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Analyst: Groupon Now Risks ‘Self-Reinforcing Path to Insolvency’

By Connie Loizos — 4 years ago

Groupon’s troubles are bad — and they’re likely to get worse, says Sam Hamadeh, founder of the New York-based financial analysis firm PrivCo. Since Groupon released its third and most recent amended S-1 document — excluding what it pays out to merchants, and revising its reported 2010 revenue of $713 million down to $313 million as a […]

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Groupon’s Founders Make Words Pay, But for Whom?

By Connie Loizos — 5 years ago

The New York Times recently wrote a piece suggesting that “Groupon’s fate hinges on words.” Unlike Google, which “had secret algorithms that gave superior search results,” or Facebook, which “provided a way to broadcast regular updates to friends and acquaintances that grew ever more compelling as more people signed up,” in the view of the Times, […]

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Slideshow: Top 10 Winners in pre-IPO Cash-Out at Groupon

By Lawrence Aragon — 5 years ago

One of the most intriguing factoids to come out of Groupon’s IPO filing today was that the daily deals website didn’t raise $946 million earlier this year for expansion. Instead, it raised the money primarily to provide huge pay days for the company’s founders, insiders and early investors.

Of the total amount raised, $136.2 million went to working capital and general corporate purposes, according to the company’s S-1.

The remaining 86% percent of the capital, or $809.8 million, was used to “redeem voting and non-voting common stock from our existing stockholders at a purchase price of $15.795 per share (on a post-stock split basis), and Series D preferred stock and Series E preferred stock from our existing stockholders at a purchase price of

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Chicago is Not the Next Silicon Valley, But at These Prices, What a Shame

By Connie Loizos — 6 years ago

With so much attention paid this year to Groupon and it’s reported valuation of north of $1 billion, numerous stories (including right here) have asked the question: is it Chicago’s time to shine?

With regard to most startups, I don’t think so, but given real estate prices in the Windy City, I wish it were. Consider this 4,700-square-foot penthouse apartment whose 360-degree views, gourmet kitchen, steam room and more will be shown to prospective buyers on Saturday. Starting bids for the property? $600,000. Try finding that much real estate for less than a few million dollars in Northern California.

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