I remember my girlfriend Ruth telling me she thought the founders of Groupon, the leaders in daily deals on the Internet, were nuts because they turned down a $6 billion buyout from Google just a few years after they started. I agreed with her. We had a good laugh about how greedy they were.
A year later they were worth $16 billion after a 2011 IPO, which was the second largest for a tech company during those years. Ruth and I stopped laughing. We should have started crying that we weren’t the ones who came up with the idea. Ruth became a big Groupon customer. She always included us in the fun activities she bought. To this day, she and her husband Howard, are always going to amazing events that were presented on Groupon.
That’s why I was so startled when I read that Groupon was putting itself up for sale. Recode, a leading tech site, announced the sale. I later learned that Groupon is now valued at just $2.4 billion.
It doesn’t make sense that a very successful and popular company suddenly starts to go sour. I often wonder why it’s so easy for an entrepreneur to start a business but not as easy to keep it going forever?
For clues to what went wrong with Groupon read Recode. Click here.