Tags: Groupon Says it Raised 500 Million | Plans Buyback

Groupon Says it Raised $500 Million, Plans Buyback

Thursday, 30 December 2010 11:55 AM

Groupon, considered one of the fastest growing companies in Internet history, has raised $500 million as part of an effort to generate $950 million in financing.

The three-year-old online discount-coupon company raised the funds, according to a regulatory filing on Thursday, after reports last month that it was in talks to sell itself to Google Inc for up to $6 billion.

Had the talks been successful, it would have been Google's biggest acquisition.

Groupon did not disclose the names of the investors. Company executives could not be reached for a comment.

The bulk of the funds raised — $344.5 million — will be used to buy back stock from existing shareholders, the company said in a filing with the U.S. Securities and Exchange Commission.

Its shareholders include Chief Executive Andrew Mason and Digital Sky Technologies, which also is an investor in Facebook.

"That is a nice little chunk of change," said Justin Byers, head of business intelligence for VC Experts, a firm that follows investments in private companies.

Analysts estimate it has annual revenue ranging from $500 million to $2 billion. It sends members daily e-mails with discounts from local merchants. The discounts are activated when a certain number of people agree to make a purchase.

© 2020 Thomson/Reuters. All rights reserved.


   
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Groupon, considered one of the fastest growing companies in Internet history, has raised $500 million as part of an effort to generate $950 million in financing. The three-year-old online discount-coupon company raised the funds, according to a regulatory filing on...
Groupon Says it Raised 500 Million,Plans Buyback
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2010-55-30
Thursday, 30 December 2010 11:55 AM
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