Groupon’s board has authorized the company to raise up to $950 million in what would be the biggest round of equity financing since Pixar sought some $500 million in 1995, the venture capital data firm VC Experts said on Tuesday.
The online discount coupon company, which specializes in local advertising, is seeking the funding after reports last month that it was in talks to sell itself to Google for up to $6 billion, in what would have been the web advertising giant’s biggest ever acquisition.
Groupon made its intentions known in an restated certificate of incorporation that it filed with the State of Delaware on Dec. 17, according to Justin Byers, head of business intelligence for VC Experts, which specializes in providing data on private companies.
Officials with Groupon could not immediately be reached for comment.
Looks like Groupon is looking to buy some companies of it’s own.
It’s a logical step for Groupon. With giants like Google and Amazon joining this game, money is very important for them to maintain their current market leader status. However, one of the problems Groupon facing is that it’s the products or services that the buyer cares the most. With the increasing number of deals offered, buyers can just visit a daily deal aggregator like http://www.shopway.com to check all the available deals easily. As a user, it makes absolutely no difference to me if I get an email from Groupon, LivingSocial, or ShopWay telling me about a deal, since I’m after the deal itself. With all of these clones coming up, Groupon’s model runs the risk of becoming a commodity.
Groupon could use this funding and investing in a lot of different ways in order to help expand and grow their business. This will help their consumers save money.
A great way for consumers to save is by going to http://www.dailydealpool.com. They’ll email you daily with a list of the best deals and sales in your area, ensuring you won’t miss out on a great local buy!