Three Numbers Explain Why Facebook Just Launched A Groupon Clone

Sheryl Sandberg

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Why did Facebook launch a Groupon competitor last night?The answer lies in three numbers.

  • $15 billion. Groupon is set to IPO later this year or early next. When it does, bankers expect the newly public company to have a market cap worth over $15 billion. 
  • $100 million. An source that works in the Facebook ads business estimates that Groupon, Living Social, and all the startups trying to copy them already spend about $100 million a year advertising on Facebook, looking for new users. Why shouldn’t Facebook try and cut out the middle man?
  • 6X. Groupon has about 50 million subscribers getting its daily deals emails.  Facebook has six times as many people looking at their Facebook News Feed every single day.

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