[watchandwait]

The Groupon IPO could easily not happen, given the current market turmoil and the SEC scrutiny. If forced to wait several months before the IPO, the company may need to raise more money privately, or could basically fail and fall into the arms of a suitor like Google.

[amorphid]

Groupon is not a Ponzi scheme. In the process of raising money from late stage investors, Groupon has to say what the funds will be used for, which includes paying off earlier investors.

[Cushman]

Using investment money to pay off earlier investors while claiming to be profitable to drive further investment is the definition of a Ponzi scheme.

They probably don't mean for that to be their business model, but it is what it is.

[amorphid]

Groupon is making a fist ton of cash. If they stopped spending money on hiring and marketing, they'd be wildly profitable. Investors have access to all this information.

Also, Groupon has a clear formula for growing and how long it takes that new business to become profitable. That is why they can raise so much investment.

If you can come up with a convincing argument why Groupon is a Ponzi scheme, then call the law enforcement. You'll get on the news for sure!