Here's what Groupon means for the IPO market

Groupon had the biggest tech IPO since Google only one business day ago. So now what?

Of course, ’tis the season for speculation, especially with Zynga set to go public within the next two weeks andFacebook rumoured to be in the pipeline for 2012. What will the impact of the Groupon IPO be? Is it enough to shock the IPO window back open?

I have mixed feelings on this. On the one hand, Groupon did exceed a lot of expectations, even if its share price is already beginning to slide. The company had shed two thirds of its anticipated valuation of $30 bn and had challenges with the CEO’s big mouthaccounting measures and overall financial performance.

Zynga, next to go public, has had a number of financial situations and accounting debacles since filing its original S-1, a situation that looks a lot like Groupon’s (at least from this far outside). The question is whether there’s enough hype around Zynga, both on its own and because of the recent Groupon transaction.

As far as the rest of the IPO market is concerned, we’ll also be waiting to see if the likes of Groupon can provide a little list to firms such as Angie’s List and other smaller companies that are looking to go public in this difficult market.

Fortunately, there are plenty of companies in the pipeline, so experience will soon test speculation.

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Source: Silicon Valley Mercury News

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