Since filing for an initial public offering June 2, the daily deals website has come under scrutiny from newsmedia outlets, analysts and more, all picking apart various aspects of Groupon, such as whether the daily deals model actually works, how it will face emerging competitors, whether it will be a financial flop, and more.
And although the Chicago-based Groupon is in an enforced “quiet period” since filing with the Securities and Exchange Commission and isn’t allowed to respond to these concerns, it still got its point across today in a blog post:
“The ‘Quiet Period’ is the time right before a company ‘goes public,’ during which it is legally prohibited from saying anything to the press that may make the company look ‘good,’ ‘successful,’ or ‘not currently on fire.’ During this sensitive time, it is the duty of the press to force the adolescent company through a series of brutal hazing rituals, designed to desensitize it to public criticism. This tough love helps the naively optimistic company to thicken its skin, atrophy its soul, and finally grow up into a real corporation.”
According to Yipit, real concerns involving Groupon have not yet been answered. These include: self-serve at Groupon Stores did not work; Groupon Now is still unproven and very different from Groupon’s current way of doing business; competition could be hurting Groupon’s business in its older markets; its shareholder structure doesn’t give public market investors much of a voice; and more.
Groupon will likely have to wait until late this summer or even the autumn for its stock to be priced and trading publicly, MarketWatch reported last week. And until everything is in line at the SEC, it will have to wait to comment.