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Technology Stocks : Groupon, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (107)	9/6/2011 3:44:01 PM
From: Glenn Petersen	Read Replies (2) \| Respond to of 480

GROUPON CANCELS IPO ROADSHOW, SEC Wants Answers On Leaked Memo Henry Blodget Business Insider Sep. 6, 2011, 2:44 PM Groupon has canceled its IPO roadshow, which was scheduled for next week, Anupreeta Das of the Wall Street Journal tweets (citing a DJ Newswires story). The SEC has reportedly been asking questions about the internal email that was leaked two weeks ago that struck many observers, including us, as likely violating the SEC's pre-IPO "quiet period" rules. According to Anupreeta Das, Groupon says it is "re-evaluating IPO plans" as a result of "market volatility." But the SEC has also apparently begun an inquiry into the email. Two weeks ago, infuriated by constant media bashing of his company, Groupon CEO Andrew Mason wrote a long email to Groupon employees laying out his case for why the company was in great shape. This email took on critics point by point, arguing that Groupon had plenty of cash, was not a Ponzi scheme, and would become a massive and profitable company. The email was immediately leaked to Kara Swisher at All Things D, prompting concerns about the quiet period. In 1996, Wired was forced to pull its own IPO after a similar memo was leaked to the Internet. Groupon is one of the fastest growing companies in history. Based on a detailed analysis of the company's financials, we think it has a real business, one that should eventually be nicely profitable. The company is running low on cash, however. If the IPO is postponed indefinitely, Groupon would likely be well-advised to raise an additional cash cushion in the private markets. businessinsider.com