Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. DESCRIPTION OF BUSINESS
Groupon, Inc., together with the subsidiaries through which it conducts business (the "Company"), is a local e-commerce marketplace (www.groupon.com)
that connects merchants to consumers by offering goods and services at a discount. The Company, which commenced operations in October 2008, creates a new
way for local merchants to attract customers, while providing consumers with savings and helping them discover what to do, eat, see and buy in the places they
live and work. Each day, the Company emails its subscribers with discounted offers for goods and services that are targeted by location and personal preferences.
Consumers also access deals directly through the Company's website and mobile application.
The Company, based in Chicago, Illinois, was founded by Andrew D. Mason, the Company's CEO, and Eric P. Lefkofsky, the Company's Executive
Chairman, and evolved from a business they founded called The Point (www.thepoint.com), which is a web platform that enables users to promote collective
action in support of social, educational and other causes. The Point originally was established as a limited liability company ("ThePoint"). Effective January 15,
2008, The Point converted its legal form to a corporation organized and existing under the General Corporation Law of the State of Delaware, and merged with
and into ThePoint.com, a newly-established corporation ("ThePoint.com"). ThePoint.com subsequently changed its legal name to Groupon, Inc.