Why Groupon Is No Ebay

Chicago-based Groupon is certainly one heck of a startup. Like Zynga it sort of came out of nowhere in 2009. Even last December I was sort of only vaguely aware of how fast it was growing. But it was clear by early 2010 to the whole world that Groupon was on a tear. First a round valuing it at $250 million. Then just a couple of months later it raised new money at a $1.35 billion valuation. And then in the last few weeks Yahoo offered something even higher for the company - between $1.7 billion on the low side and probably $4 billion on the high side. And Groupon passed.

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