Blog Ipsa Loquitur

Published on under Irreverently Irrelevant

M.G. Siegler On Grouponzi:

The fast rising consensus now in certain tech circles is that Groupon is essentially a Ponzi scheme (Grouponzi, FTW). The fact that their net income is well underwater (and going deeper) has everyone freaking out. As does the fact that some of the original investors (as well as founders) took hundreds of millions off the table in the last huge round.

But I’m more with Joe Stump on this. You cannot overlook the fact that they’re also making hundreds of millions of dollars each quarter now. The run-rate for this year could be over $3 billion.

Aside from the cute name, this is an informative read, especially if (like me), all you’ve heard about Groupon lately is how it’s an unsustainable scam.