What: Pulling back on the IPO throttle
This week Groupon said it would cancel the roadshow for its long-touted IPO, which was set to take place this fall and will now be postponed indefinitely. One reason is that stock markets have been moving all over the place. But some are speculating that the Groupon frenzy is coming to an end, in part because the company is spending huge amounts of money to acquire customers, which isn’t a sustainable strategy. The company also bungled the early stages of its public offering, inventing new accounting metrics and drawing the scrutiny of the Securities and Exchange Commission. There are lessons in here for other companies hoping to go big fast, and cash out.