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Showing posts with label Andrew Mason. Show all posts
Showing posts with label Andrew Mason. Show all posts

June 6, 2012

Groupon Stocks Plunge as founders Loose Billions

Groupon founders tally billions in paper losses - Chicago Sun-Times: "Groupon’s Big Three — founder Andrew Mason and founding investors Brad Keywell and Eric Lefkofsky — have lost roughly half of their multi-billion-dollar holdings since the daily deal site’s stock started tanking.

Last week saw the Groupon shares tumbled 9% as Employees and other insiders are required to wait before selling their stock following a company's initial public offering. Groupon's lock-up period expired on June 1st,2012. Groupon 's falling shares on the NASDAQ are in line with what most technology Companies are seeing in Q2, are down about 26% over the past week.

There hasn't been any major news specific to Groupon -- other than the so-called lockup expiration that allows insiders to sell to explain this week's sell-off. But several Internet companies have tumbled along with Facebook. Since the social network's IPO about two weeks ago, Facebook shares are down more than 30%.

Monday's decline brings Groupon's market capitalization to about $5.8 billion. That's less than the roughly $6 billion that Google offered to buy Groupon in December 2010. 

Groupon's CEO Andrew Mason’s stock holdings had been halved since Groupon’s Nov. 4 public stock offering, based on the $20 initial share price and its trading price Tuesday, to about a $500 million value from $1 billion; Keywell’s value had slid to roughly $395.8 million from $824.5 million and Lefkofsky to $1.24 billion from $2.58 billion, according to independent estimates by two sources."