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CNET News Video: Is the Groupon IPO a good deal?

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CNET News Video: Is the Groupon IPO a good deal?

1:36 /

Chicago-based Groupon has established itself by selling online coupons for local businesses. Tech companies and investors will be closely watching as the 3-year-old company goes public later this week. CNET's Kara Tsuboi reports.

-San Francisco state home mom Joanna [unk] was an early adaptor of Groupon and its online deals. -I use it for certificates to get away, relax with the kids, family items that come up like kid lessons or art puzzles. -But over the years, her interest in the startup has faded. -I actually like Groupon less every year it's become, like I feel I got a lot of spam from Groupon. -[unk] is not alone with her muted enthusiasm. -The bloom has gotten off the road of level peak. There are competitors to Groupon, and they are popping up everywhere and the consumers are declining or slowing their use Groupon it looks like. Certainly, the growth of Groupon has decelerated. -In its 3-years of existence, Groupon has amassed more 50 million members worldwide, but is yet to turn a profit. Now, to raise money, an estimated half billion dollars the company plans on selling a chunk of itself to the public, but not all analyst or investors expect the stock to be a good investment. -This is a good stock to buy today and sell tomorrow and then we'll see. -Their values perceived it's not actual tangible. So, they could be incredibly viable and then lose everything next week. -Still this public offering is considered the biggest since Google in 2004 and could redefine business plans for many tech start ups. -A lot of high profile internet companies-- Facebook, Zynga, Angellist are looking to Groupon IPO to see if it works and if it does, it will make it for them to go public as well. -In San Francisco, I'm Kara Tsuboi cnet.com for CBS news.

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