Tech wrap: Groupon rethinks IPO
Groupon called off an IPO roadshow slated for next week because of market volatility, the Wall Street Journal reported. The Internet coupons site is reassessing the timing for an offering on a week-by-week basis, the newspaper added, citing an unidentified source. Some on Wall Street have questioned Groupon’s financial disclosures, while others are concerned the company’s rapid growth is starting to slow in North America. Groupon CEO Andrew Mason sent a memo to employees recently that was widely reported in the media, in which he blasted critics in the press and on Wall Street.
Sprint filed a lawsuit to stop AT&T’s $39 billion purchase of T-Mobile USA in the same federal court that is to hear the Department of Justice’s case opposing the buyout. Sprint said the combination would lead to higher prices for consumers and create a duopoly between AT&T and Verizon Communications. Also, Sprint argued that if the deal goes through, a combined AT&T and T-Mobile would have the ability to use its control over roaming and spectrum, and its increased market position to exclude competitors.
Dell and China’s top search engine Baidu plan to jointly develop tablet computers and mobile phones, targeting the Chinese market dominated by Apple and Lenovo. Dell declined to give a timeline for the launch of the devices, but local media quoted sources saying that it may be as early as November. Baidu launched a new mobile application platform last week and offered a glimpse of its upcoming mobile operating system, which it hopes will serve a growing number of users accessing the Internet from smartphones and tablet computers.
Regulators in South Korea raided Google’s Seoul offices, according to a source familiar with the matter. Google said in a statement that it will work with the Korean Fair Trade Commission to address any questions it may have about the Web search leader’s business.
Jaguar Financial Corp, an activist shareholder in Research In Motion, said it wants the struggling BlackBerry maker to consider selling itself or spinning off its patent portfolio, sending RIM’s share price higher. Jaguar CEO Vic Alboini said Jaguar has talked to a select group of shareholders and received broadly positive feedback for its plan. Jaguar, a Canadian merchant bank that targets underperforming companies, and its supporters hold less than 5 percent of RIM’s stock. RIM shares ended up, just over 1 percent.