Groupon Tries for IPO Before Facebook ‘Deals' Takes Off

Is Groupon worth $25 billion? The daily deals company is said to be readying for their initial public offering, and not a moment too soon -- other daily deal sites, such as LivingSocial and Facebook Deals, are weakening its market share and foundation.

I believe that Groupon is grossly overvalued. It owns no patents, no proprietary software or even innovative marketing. It's such a simplistic business model that it launched dozens of copycat sites and Groupon cannot outcompete them all. Eventually someone will see this and venture capitalists will quit throwing their good money after bad or better yet -- investors will stay away from this turkey.

Groupon has 70 million users. That number makes Mark Zuckerberg laugh. Facebook Deals, with access to almost 600 million users, will leave Groupon crying and bleeding in the street.

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