CEO Sharon Price John says Build-A-Bear’s old e-commerce system is a big reason for disappointing online sales in December.
The daily deal site could raise as much as $950 million, according to filings.
Groupon Inc. today said it had raised $500 million in a new investment round, more than half of the $950 million it could attract. The privately owned daily deal site made the disclosure today in a filing with the U.S. Securities and Exchange Commission.
The filing did not indicate where the investment came from. Nor did the company name any new board members. The filing says the funding came from 33 investors. In today’s filing, Groupon said that “a portion of the gross proceeds will be used to pay for shares repurchased by the issuer.” The filing suggests that Groupon has set aside nearly $345 million to buy stock from early investors.
In the filing earlier this week, Groupon, which is two years old, said it would sell more than 30 million shares at $31.59 each. That would make Groupon worth $6.4 billion, according to VC Experts, a research firm that analyzes the value of private companies. Earlier this month, Groupon reportedly rejected an acquisition offer from Google Inc. for up to $6 billion.
Groupon could use the new investment round, the company’s seventh, to buy international rivals, says Lou Kerner, vice president equity research at Wedbush Securities.