Shares in Gannett's chief online coupon rival traded at $9.63 early this morning, less than half the price it fetched when the company went public six months ago -- and illustrating the hyper competition in the crowded industry.
Chicago-based Groupon reports first-quarter results on Monday. Wall Street stock analysts are expecting a loss of 4 cents a share, down from 48 cents a year ago.
The company's initial public offering at $20 a share came just three months after GCI announced the nationwide launch of DealChicken.
GCI's stock recently traded for $13.23, down less than 1%.
Earlier: By the numbers, Deal Chicken vs. Groupon.
The company's initial public offering at $20 a share came just three months after GCI announced the nationwide launch of DealChicken.
GCI's stock recently traded for $13.23, down less than 1%.
Earlier: By the numbers, Deal Chicken vs. Groupon.
Right now the deal chicke site is down. From a post on facebook: At this time, the DealChicken sites are experiencing issues. A fix is on its way!
ReplyDeleteDoes that go through Newsgate now, too? Then we're really clucked.
ReplyDeletebecause if the recognized industry leader's value is shot.....
ReplyDeletewe can TOTALLY expect the chicken to make GCI money.
Pretty ironic that Groupon, well-known for providing discounts, is selling at a significant discount of its own.
ReplyDeleteGannett will be to as the likes of Deal Chicken moves won't restore what years of poor management has brought.
All a bad fad.
ReplyDeleteJust got an e-mail offering GroupOn stock at a discount. The same e-mail included a 2-for-1 offer at a massage parlor in Jessup, MD.
ReplyDeleteI just deleted my Groupon Email right before I went to the blog. The top deal was for another Massage/Spa treatment...they have spa advertisers all the time. In over 6 months of getting Groupon emails, I can remember 3 or 4 deals that sounded intresting and I have purchased none.
ReplyDeleteThe chicken's deals are truly pathetic and worthless. Keep it up and this chicken will finally get fried.
ReplyDeleteBuy one Groupon share, get 100 pre-IPO Friggin Chicken shares free!
ReplyDeleteSo very funny. Let's dis the largest growing line of business in the company. It is bringing in more revenue than many other properties with much less cost. Whatever.
ReplyDeleteSubstantiate your claim.
DeleteJust count the money. Newspaper revenue is down. Pork roll is down. Tv is up. News quest down. USAT down. Lemon aid stand at CP up. Weekend down. Deal chicken is up well up. How is that. Choke the chicken.
ReplyDeleteYeah, sure, 9:25PM, that's why the CEO did not even mention it in the last financial conference call and at the shareholders meeting. She wouldn't want employees and investors in on the story of such an outstanding revenue stream. Umm humm.
ReplyDeleteOkay, so it's easy to see what The Chicken is getting inself into. For
ReplyDeleteinstance, Phoenix has more than $50,000 in deals sold on its site today.
Assuming that is a week's worth of deals (I don't know, but I presume they are there a week. My math would be much higher if less than a week) and if every week was like this week that's $2.6 million
in a year.
Again, I don't know, but looking at a smaller site like my Reno, today's total (for the week) looks to be about $3,000. So that's about $150,000 for the year.
So multiplying that as a sample- who knows this isn't scientific,
that's about $10million. Add in a million or two for national deals.
So between those that's $13 or $14 million of revenue.
There are a number of papers and stations that don't bring in that kind
of revenue. So while this is not a savor it's not chopped chicken either.
Bottom line people. Be real. Not a savior. Not something to bark to the shareholders. But if the growth continues there is some real money to be had. Gannett would be foolish not to take the money.
All the deals of the day are going down. Businesses have learned that they don't generate real new business, just bargain shoppers. Groupon is by far the best with excellent follow up and good customer service, but still the model is breaking. They also vet deal quality and talk customers through their desires to put silly limitations on the deals.
ReplyDeleteI love Groupon, at least here in Phoenix, and will be sorry to see it go. the chicken is best here, where it started. But still, a lame chicken (in this election year).
If you have no Gannett affiliation, the deal fowl doesn't even show up on the radar, a poor also-ran. It was doomed when GCI tried to centralize it. They just can't make centralization work. For anything. All those markets screaming: But our market is different!!
SO glad it isn't my problem anymore. But those who work with the chicken are clogging our job posting desperately looking for a ticket out of the hen house!!
Audra's underlying business idea & business model for Gannett's "Deal Chicken" has been an enormous success. Groupon differs from Gannett, because Groupon required a large amount of upfront investment dollars to build a company from the ground up, and purchase external advertising. Audra's idea used existing sales-staffers within our established local properties and also used cross promotion within multiple Gannett properties. Gannett utilized existing resources, to sustain jobs that may have been jeopardized if it wasn't for the idea & success of Deal Chicken. What's even more impressive is that Audra had submitted her idea to the DIG, prior to the release of Groupon. It took a while for Gannett's internal development. However, it is still an enormous success. She is gifted in looking at the situation and introducing new products to bring in revenue, with existing talent. I hope that Gannett is wise enough to have that woman develop more business ideas, so she can continue to generate revenue in other areas of the company.
ReplyDeleteRevenue goals are NOT being met for DC. They are hiring part time commission only reps for every market. Gannett local dial into markets where they have no idea where these merchants are located or what paper they are affiliated with. Its a mess and does not look good for DC and unfortunately it will be the sales teams fault for not bringing in "quality deals" when in most markets people think Deal Chicken is the dumbest thing ever created. Its not very inspiring.
ReplyDelete