Is Groupon Inc (GRPN) the Best Poorly Executed Idea Ever?

Likewise, consider Living Social, in which Amazon.com, Inc. (NASDAQ:AMZN) has a 29% stake. It’s struggling to navigate the poor deals environment. But is it really just the environment, or the idea itself? The difference, though, is that Amazon is dominant outside of the deals business. The urgency is not there — at least not yet. And don’t discount that Amazon can sustain Living Social’s business just long enough to kill off Groupon Inc (NASDAQ:GRPN). And after Groupon’s recent quarter, this probability has increased.

Don’t let the door hit you
Although Groupon Inc (NASDAQ:GRPN) posted a 30% increase in revenue, this number alone does not reflect underlying strength of the company. As fellow Fool Rick Munarriz noted, that bump came from Groupon’s new line of business: selling overstocked goods. The market was smart enough to separate out the fluff. When was the last time a 30% jump in revenue got a CEO canned? This business is doomed once the very idea that took this company public becomes secondary.

Unfortunately for Groupon, it’s no longer an attractive target for any companies looking to merge or acquire it. I once called it the perfect match for Facebook or Amazon. But not now, especially since the company announced that Eric Lefkofsky and Ted Leonis will take over until the board finds a replacement. Knowing Lefkofsky’s sketchy past, which includes accusations of racketeering, bankruptcies, and several lawsuits, any potential acquirer would be looking for trouble.

The article Is Groupon the Best Poorly Executed Idea Ever? originally appeared on Fool.com and is written by Richard Saintvilus.

Fool contributor Richard Saintvilus has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Facebook, and Google. The Motley Fool owns shares of Amazon.com, Facebook, and Google.

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