Photo: Dan Frommer, Business Insider
Groupon is being pitched by bankers to do a $15 billion to $20 billion IPO, the New York Times reports. That’s much higher than the valuation rumoured earlier today, and two to three times the amount Google offered for the company a month ago.The company just raised close to a billion dollars from a bunch of investors including Kleiner Perkins, Andreessen Horowitz, and Greylock, and rumours emerged earlier this week that the company was talking to bankers about a possible IPO as early as this spring.
Given the ginormous valuations of other pre-IPO Internet companies lately — Facebook at $50 billion and Twitter at $3.7 billion, and the fact that a public company, Travelzoo, trades at $400 million only four months after launching a Groupon-like daily deals service — it’s reasonable to talk of a bubble. That said, Groupon has grown incredibly fast, and is estimated to be pulling $2 billion a year in revenue after only three years in business.