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Groupon, the Deal That Keeps Getting Cheaper

Groupon, the Deal That Keeps Getting Cheaper
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Is Groupon too good of a deal to be true?

In a development that must have rueful Groupon merchants giddy—discounting cuts both ways—the stock now trades at nearly a third of the high it set after its November IPO. In August, accounting professors Anthony Catanach of Villanova University and Edward Ketz of Pennsylvania State University blogged: “It is absolutely ludicrous to think that Groupon is anywhere close to having an effective set of internal controls over financial reporting, having done 17 acquisitions in a little over a year. … When a company expands to 45 countries, grows merchants from 212 to 78,466, and expands its employee base from 37 to 9,625 in only two years, there is little doubt that internal controls are not working somewhere.”