Actually no reason to take it over, the daily deals business model is losing money..plus there is no barrier to enter the space, so why pay a premium to buy into it?..it just doesnt make business sense..google and amazon have their own daily deals already and it would make more sense to aggressively put capital into their own existing sites if they seriously cared about the chump change rewards daily deals offered..facebook is in bad shape and they have plenty of access to a billion users on their own already if they wanted to pursue this daily deals fiasco....new daily deals sites are popping up everyday, the latest one allows you to just go to the place and show the deal to the place on your smartphone without even having to buy the coupon in advance!..so groupon isnt an attractive takeover target, esp at this price..maybe when it goes to 2 or 3 bucks..but even then it wouldnt make sense...why buy a sinking ship?
As for bankruptcy, that wont happen for awhile..the company has cash to stay afloat for a bit, but keep in mind they are very ambitious and always expanding, plus they have a lot of employees and overhead..nothing like priceline..also the way they work is they dont have to hand the cash to the merchant till the groupon is presented there, so that makes the cash inflated..but when the earnings come out the stock will get punished hard if they miss the number..its pretty criminal that they wont tell you that the earnings will miss until they release them even though they already know it, and shareholders will get buried..run like hell from this stock, its too much of a gamble when there are much better stocks to buy..the market hates uncertainty and groupon is far from transparent.
FB has it's hands full dealing with angry users because of their agressive gift feature. One of the reason FB stock was in dog house lately. I doubt they will risk rolling out daily deal feature anytime soon. The thing about daily deal is that you get a few emails every day, we have hundreds of junk mails to sort our every day, we don't want more junk mail. We hate them. However, most of us don't want to delete all of them, just in case, like the good Starbucks deal come along, my favorite restaurant, etc. So we keep one alive, of course, we'll keep the one that has better chance for deals like Starbucks or B&N bookstore. Yes, it is easy to start a daily deal website but do you have the man power to hire thousands of sales people to get good deal? What is your plan to sign up millions of users before your cash dry out?
I agree with you that it here is no barrier to enter the space. However, things are normally more complex than one think. Google is cash king and king of talents, what happened to Google offer? How many of your friends are using Google Offer? The reason FB has 40B market cap and with such hype is it's large active user base. I use Travel Zoo for more than 10 years, loved their deals, Travel Zoo offers the travel zoo deal right after Groupon become popular, that caused TZOO stock went up to $100 plus, they still sending me and my friends travel zoo deals but none of the deals are good so we just delete them in inbox or just ignore. Facebook has it's hands full dealing with users' complain about ads coming up all the time, if they start to senting out junk mails to users, it will be really bad for PR. I have already have friends delete FB account because they were asked if they want to buy their friends bday gift once they login, FB already trim down this effort boost their gift feature, so it is actually not as easy as you thought. Users are fickle, you have to be careful.