There’s been a lot of bad press for Groupon lately. After an internal memo from CEO Andrew Mason trying to boost employee morale in response to the bad press, the SEC started questioning the company more, and its IPO was reportedly delayed (previously planned for just after Labor Day).
Since then, reports also came out that the company was being sued by its own sales staff, based on claims that the company violated federal and state labor law, and that Groupons can actually hurt the reputations of businesses who offer them. That was based on academic research of how Groupons impacted Yelp ratings for businesses that offered them.
More bad press. It hasn’t been all bad, however. This week, it was reported that the company is testing e-commerce deals, which if they turn into more than a test and go mainstream across Groupon’s markets, could be a tremendous new source of revenue for the company. Revenue, by the way, is also one area where the news hasn’t been so bad.
Now, the New York Times is reporting that the company is back on track to launch its IPO as soon as October or November. This is based on comments from “people briefed on the matter” who say that the IPO roadshow could take place in the mid-October.
The SEC issues have apparently been resolved, and Groupon will go forward with its IPO at a time when others are waiting for better market conditions.