Deals
Groupon IPO Said to Ask Triple Amazon’s Price-to-Sales Ratio
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Groupon Inc. is seeking a valuation of about 5 times projected 2012 sales in its initial public offering, people familiar with the plans said, making it more expensive than Amazon.com Inc. and Microsoft Corp.
Advisers to Groupon based the asking price for the IPO on a projection that the company will have sales of about $2.1 billion next year, said the people, who asked to remain anonymous because the figures are private. The $17 midpoint of Groupon’s IPO price range would value the company at $10.8 billion, or about 5 times that sales prediction.