Trouble in Groupon Land

We all know social coupon ground-breaker Groupon is going public.  But now the company's IPO has reportedly been delayed. First, there was the drama with the controversial accounting methods, which had to be removed from the initial IPO.  Plus, doubts regarding the firm’s high marketing costs, major competitors and heavy losses have run rampant.  Some have even questioned the behavior of Chief Executive Andrew Mason and other executives in the company during the quiet-period required by SEC rules since it filed its S-1.

Now, Groupon has announced that it will be postponing the road show to drum up support from investors, originally scheduled to launch next week.  The Wall Street Journal reports that without the roadshow it is unlikely an IPO is imminent.

Is it just the volatile market, or is this a bad sign for IPO's in the social media and networking sphere? It could simply be the issues with Groupon itself amid intense SEC scrutiny.

Will Nesbit