Groupon Annual Revenues Actually $2 Billion
According to sources close to the situation, Groupon’s actual run rate for this year is clocking in at $2 billion in revenue, rather than the widely quoted $500 million.
Who knew hawking spas treatments and stripper pole lessons could be so lucrative?
About 50 percent ofhat revenue is paid out to the myriad of local merchants–called a pass-through–that the social buying phenom does discount deals with, those kind of numbers give some insight into why Google has been willing to entertain paying up to $6 billion to acquire Groupon.
The pair have been in discussions about an acquisition by the search giant, which was first reported here.
Over the last several weeks, a much lower $500 million to $600 million annual revenue figure has been used for Groupon–including here.
Apparently, that’s only in one quarter of the year.
The Chicago-based start-up is privately held and does not have to release its financial information.
As in all acquisition talks, there is a chance they will not result in a purchase. Google and reviews site Yelp, for example, held serious discussions that resulted in no purchase by the search giant.
[UPDATE: The Google-Groupon talks are over, as Chicago-based start-up decided to go it alone.]
One thing not true: A split between CEO Andrew Mason and his two original partners–Brad Keywell and Eric Lefkofsky over the possible sale.
That tension has been rumored by some, with Mason more interested in keeping Groupon independent and focused on an IPO and the others wanting to sell.
Sources said the trio are not at odds over the future of Groupon.