Just to let you know I came across yet another site that is literally launching or has launched just days ago, the concept: send a coupon straight to your cell phone. :eek:
i am still waiting for someone to explain to me why groupon.com is worth 6 billion dollars. even fatwallet.com (which is the largest and most popular coupon/bargain site on the net) isnt worth a fraction of that.
I saw an ad for a very similar coupon website. The ad looked just like groupon, but was called wagjag.com. Seems to me that it is a very easy business model to copy. Whether or not they made a mistake not taking google offer, i think it's too early to tell.
woot is also the same kind of concept as well, there are dozens out there and probably another few hundred ready to launch in the next 12 months.
you miss the point. its the dollar than isn't worth the green ink its printed with. the valuations on almost every company bear no resemblance to their value or cost to replicate. especially some ridiculous web based nonsense like crapon. its all a scam.
Most dot.coms flop. A few take off. Monster.com guy sold for 100 million now it is worth over 1 billion. Groupon feels they are in that category.
The questions are: 1. How hard it is to enter the same type of business? With Youtube whoever came first had the advantage of building a large user/video base. The same was with Myspace/Facebook, but the ads scared the Myspace users away. A coupon site is really not that hard to make. You don't need huge servers as Youtube's. 2. How unique is the website compared to similar sites? I assume all of those coupon sites are fairly similar. So what makes a user choose one over the other? And seriously, it boils down to greed. Monster is more of an exception than the norm, I would say. The Mark Cuban rule should apply, "If someone offers you 6 billions (Broadcast.com), take it and enjoy the rest of your life." By the way Google could have blackmailed them by saying: You either sell now, or we are going to make our own and with our large cash reserves, we will put you out of business.
groupon Market Cap: 1.80B Maybe google can offer them $1.9 Billion now. They should have taken the deal just like yahoo should have taken the deal from msft years back! And to think they valued this company at over $15 Billion during the height of the IPO, wonder how many got caught up in this hype? Facebook will be in the same single digits as groupon is....