Groupon Raises $500M For Financing

CHICAGO (CBS) -- Chicago-based Groupon, the fast-growing Internet startup that offers local deals and discounts to members, has raised $500 million of the $950 million it is planning to collect in its latest financing round.

The Chicago company said in a regulatory filing Thursday it plans to use up to $344.5 million of the proceeds to buy back shares from existing shareholders, including founder and chief executive officer Andrew Mason.

The money is being raised just a few weeks after Google Inc.'s failed attempt to buy 2-year-old Groupon for a reported $6 billion.

Previous funding -- $135 million -- came from Mail.ru Group, also known as Digital Sky Technologies, a Russian Internet investment firm that also holds a stake in Facebook.

Groupon is headquartered at 600 W. Chicago Ave. on the city's Near North Side, Groupon sends its members daily e-mails with about 200 deals for goods and services.

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