Investors want their money and the IPO is their payback. Lot of these companies will not survive and the retail buyers of the stock WILL pay the price at the end.

I love his statement "its different now"

Groupon and the social media sites are fads, likely the majority wont be around in 10 years. All you have to do is look at the history of our markets and business ventures. If you produce nothing its only a matter of time.

Thats why staples are around and fads are not. IPO's are as tontosh stated a way to cash out on something that probably wont last.

Tontosh is correct - someone had to front the money for these massive losses, and therefore is looking to get their money back. Which is where the IPO comes in.

As investors, why wouldnt anyone be demanding that Groupon explain, even slightly, how they plan to take this company from massive losses, to massive profits?

I've never understood why people would view a company raising 750 million in stock offerings as anything OTHER THAN MORE DEBT.

So the company has already lost 500 million, add another 750 million...and they are magically going to grow the company to EARN PROFITS enough to pay back the initial investors, the new investors, and to keep moving forward?

I can only hope that average people, dont invest in this...let the uber wealthy get fleeced. Middle class america needs to pull out of wall street, and let them scew each other over...not us anymore.

The billions that Google offered to buy Groupon are looking pretty sweet now I bet. The problem with Groupon is that smaller clones of it have been biting off bits and pieces of its business, so now it's rushing to IPO.

It's too late. Average Americans are getting screwed. Idiots who are in charge of pensions and retirement funds are investing our dollars into these risky junk investments... and like always, we are getting screwed for it.

http://www.nytimes.com/2010/03/09/business/09pension.html

dont invest on wall street period, and they cant take your money, period.

let them throw their money away amongst themselves.

Jessica - incorrect. Whether you invested on Wall Street or not, the reckless and immoral behavior with derivatives in the last 10 years has taken money from ALL of us, most especially those who have not received a government bailout and can't afford trickdick accountants to cook our taxes.

Sure, what you state is trivially true, but it's only a small part of the big picture.

I noticed the same thing...

Are you kidding me Kevin? How long have you been of voting age? Do you actually think one side of the isle is a better option than the other? Grow up or they will have you scratching your head 40 years from now wondering why one side or the other has not made a difference.

Kevin my boy this is what Career Politicians do for a living.

Right on Kevin! Why does Wall Street and the entire system continue to invest money on worthless crap while the Chinese pursue commodities, production and real jobs?

You have the almost-Decade of Dumbya Bush and GOP control of Congress to thank for all this...

Sorry to burst your bubble, but the Democraps are just as much in on this scam as the Republitards. The ONLY politician who wants to END THE FED

is RON PAUL.

If you want something to change, it has to start with the monetary policy. No government has ever survived long with a fiat currency, whereas many civilizations have demonstrated the benefits of "sound money".

Educate yourself on what this means, and don't get fooled into the DIVIDE and CONQUER strategy of "Democrat" vs. "Republican".

chefgl - Great question.

The answer is that China does not use a fiat currency, and as a result, despite having a centrally planned economy, they are not able to create "magic money" that allows them to artificially prop up present production for future massive inflation. As a result, their economy signals to them when an activity has a real effect on production and not just an illusory effect, and so they invest in and produce goods and services with REAL value.

Ironic, isn't it?

Yeah, more like the Plunder Protection Team. ;D

hey -- let's put Dumbya in charge again for another 8 years, and let's see just how bad BAD can get.

Bernitch - I voted for Obama, but he is no better.

He is just as much a stooge for the Fed / bankers / international criminal banking cartel / IMF / World Bank as Dumbya was.

Sure, Obama is 10x as intelligent as Dumbya was, but if you think the POTUS is calling the shots, you're just plain naive.

Who says small local businesses are any more scrupulous, or any more interested in something OTHER than "self-gain"?

In my experience, small businesses a lot of times are MORE ruthless, because they don't have economies of scale that allow them the luxury of financial benevolence - if they don't turn a profit, their families don't eat. Obviously it's a case-by-case, but there is nothing more inherently decent or generous about a local small business in comparison to a larger business. That's really just a question of leadership.

Groupon is a small business and they are trying to raise more capital so they can expand and hire more employees.

hey - careful -- "person named x" knows everything!

I have no clue what you are talking about. Groupon is a privately held company and they want to become public so they can grow their business. The way you do that is sell shares to the public. That is called and IPO, initial public offering. Investment firms are hired by the company who want the IPO to get enough investors to purchase the shares. Perhaps you can invent a better process.

he may have also said "hey, i stubbed my toe in these goddam sandals."

and

"that guy over there has a really nice butt!"

you can make a mythical creature say whatever you want.