Groupon IPO sizzles at $17B valuation

Groupon's stock sizzled in its public debut Friday despite concerns about its accounting practices and doubts about the viability of its business model.

The first-day pop for the pioneer of online group discounts was largely expected, though. Not even a gain of about $4 billion in market value -- to nearly $17 billion -- could erase lingering questions about its long-term prospects. In fact, it may have added to them.

Bigger than initial public offerings for Internet radio company Pandora Inc. and professional network LinkedIn Corp., Groupon's debut served as an icebreaker for a frozen IPO market.

It further sets the stage for the public debut of online game company Zynga Inc., which is expected in the next few weeks. It will culminate next year, with the expected IPO of Facebook, one dwarfing them all.

After pricing above its expected range on Thursday, at $20, Groupon's stock rose $6.11, or 30.55 percent, to close Friday at $26.11, after peaking at $31.14.

Groupon makes money by sending out frequent emails to subscribers offering a chance to buy discount deals for anything from laser hair removal to weekend getaways. Because the model is easy to replicate, it has spawned many copycats.-- AP