BREAKING NEWS FROM CNBC'S KATE KELLY: GROUPON HELD SERIES OF IPO PITCH MEETINGS TODAY IN CHICAGO
KATE KELLY: I HEAR THAT TWO MAJOR ONLINE SERVICE PROVIDERS, GROUPON AND PANDORA ARE SERIOUSLY WEIGHING THE POSSIBILITY OF AN IPO THIS WEEK. HERE ARE THE DETAILS. GROUPON THIS MORNING IN CHICAGO MET WITH SEVERAL BANKERS FROM WALL STREET TO TRY TO DETERMINE WHETHER OR NOT IT MAKES SENSE TO GO FORWARD WITH AN IPO SOMETIME THIS SPRING THE DETAILS IN TERMS OF THE SIZE OF THE DEAL AND THE TIMING ARE NOT IMMEDIATELY CLEAR. THE SPECULATION I'M HEARING FROM THOSE FAMILIAR WITH THEIR THINKING IS THAT THEY COULD BE A BILLION DOLLARS IN SIZE OF AN IPO OR HIGHER. NOT A HUGE SURPRISE CONSIDERING THAT THEY TURNED DOWN A DEAL EARLIER, WELL A COUPLE OF MONTHS AGO, AT MANY TIMES THAT. PANDORA, THE ONLINE RADIO SERVICE ALSO MET WITH BANKERS EARLIER THIS WEEK ABOUT A MUCH SMALLER OFFERING. THAT ONE WOULD BE ABOUT 100 MILLION DOLLARS IN SIZE, BUT ALSO AN IPO AND SOMETHING OF A SEXY DEAL BECAUSE IT'S A COMPANY THAT A LOT OF PEOPLE LIKE. THAT WAS IN CALIFORNIA ON TUESDAY. AND I'M TOLD THAT THE NEWS OF WHO AMONG THE WALL STREET FIRMS RECEIVED THAT BOOK RUNNING MANDATE COULD COME OUT AS EARLY AS TOMORROW. SO ITS GOT INTERESTING DETAILS ON TWO COMPANIES THAT ARE WIDELY FOLLOWED AND HAVE VERY MUCH BEEN IN THE NEWS LATELY. LOOKS LIKE THEY MIGHT BE TESTING THE CAPITAL MARKET SOMETIME SOON.
SCOTT WAPNER: GROUPON JUST PUT OUT THAT PRESS RELEASE THE OTHER DAY SAYING THAT GROUPON RAISES LIKE A BILLION DOLLARS OR SOMETHING LIKE THAT, RIGHT KATE?
KELLY: I THINK THAT'S RIGHT. I THINK THAT THE NEWS WILL COME AS A LITTLE BIT OF A SURPRISE TO PEOPLE BECAUSE GROUPON IS OBVIOUSLY SUCH A HOT TARGET RIGHT NOW. THEY HAVE PLENTY OF OPTIONS AND THE POTENTIAL OF A VERY NICE PAYOUT IN TERMS OF A POSSIBLE TAKE OVER. THEIR OPTIONS REMAIN OPEN AND EVEN IF THEY HIRED SOMEBODY TO DO THIS, AND FILED THEIR S-1 WITH THE SEC, THEY COULD STILL TAKE TIME TO THINK IT THROUGH. IT DOES SEEM LIKE THEY ARE TAKING INITIAL STEPS TOWARDS AN IPO.
WAPNER: KATE KELLY ON THE FAST LINE. THANKS FOR THAT INFORMATION.
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