I think it actually says more that Google was willing to pay that much... for what, exactly?
As for the merits of not taking the deal, I think we should be clear – the early investors and many early employees have done alright and most likely won't be losing their shirt like any of the recent investors:
A great line from the Short logic analysis: "At the moment, it’s costing them $1.43 to make $1, and it doesn’t look like it’s getting any cheaper."
This was the kind of thing that thoughtful business analysts were noticing in the weeks before the Groupon IPO: the company didn't have a sensible earnings model, even if it had "revenue" that dug it deeper and deeper into a hole.
Indeed. Where's the IP? It's not like there's anything of value in Groupon – customers? no lock in/low switching costs. Vendors? Every small business person I've heard talk about their experience with Groupon has said they'd never use it again.
This was the kind of thing that thoughtful business analysts were noticing in the weeks before the Groupon IPO: the company didn't have a sensible earnings model, even if it had "revenue" that dug it deeper and deeper into a hole.