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by jeremymims 4601 days ago
Today, Groupon's market cap is $6.88 billion. So, maybe it would have been smart to sell, but as of today, they're ahead.

I have a feeling that company wasn't quite the disaster you think it was.
4 comments
JumpCrisscross 4601 days ago
Not so fast. On 1 December 2010 (around when Google bid $6 billion for Groupon) the 3-year Treasury traded at 0.84% - thus $6 billion in December 2010 was worth no less than $6.2 billion today.

If you put $6 billion into the Russell 3000 index on 1 December 2010, on the other hand, it would be worth $8.7 billion (14% more) today. Given that Groupon is a high-beta mid-cap stock, I would expect this figure to be closer to a fair baseline than the prior one.

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biot 4601 days ago
Groupon raised "only" $700M from their IPO. Market cap != cash in the bank.
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minimaxir 4601 days ago
That's really not ahead.

http://en.wikipedia.org/wiki/Time_value_of_money

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cylinder 4601 days ago
Have to consider if they were offered Google shares or cash. If GOOG, look at the value of Google shares now vs then.
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