which resulted in over 600 groupons sold. >> when it goes on groupon it goes out to millions of people. around the world. i mean i have groupon people have bought groupon in china. >> but what seemed like a lucky windfall to one small business owner can feel like a disruptive tornado to another. >> of course it makes me sad. it basically ruined my business for these people. i paid for people's treatments out of my pocket who will never be my customer. >> according to a study done last year at rice university jones school of business, 32% of small to medium sized businesses reported they lost money running their groupon promotions. >> so there's 3,085 customers. as a gis to get yourself ready to be able to serve those customers, we had four additional staff members just dealing with the phones and e-mails, and we had four additional nurses to serve basically the clientele. it wasn't enough. >> she says despite her best efforts, the thousands of new customers rapidly overwhelmed her business, and crowded out her regular customers. while most of her groupon customers never bought anything

groupon told him nearly 700,000 people saw the offer. >> when it goes on groupon, it goes out to millions of people around the world. i have groupon people that bought them in china. >> what seems like a lucky windfall to one can feel like a destructive tornado to another. >> it makes me sad. i paid for people's treatment who will never be my customer. >> according to a study, 32% of small to medium size businesses lost money running the promotion. >> there's 3,085 customers. you get ready to be able to serve those customers. we had four additional staff members dealing with the phones and e-mails. it wasn't enough. >> she says despite her best efforts, the thousands of new customers rapidly overwhelmed the business and crowded out regular customers. most groupon customers never bought anything else from her and never returned. >> i tried calling a couple times. the phone was always busy. i checked the website. they had such a huge influx of customers, it's better to e-mail. >> every business has their own limits when it comes to how many clients or customers can be served in a day. at la

big news is groupon is delaying its ipo saying the site is reevaluating plans to go public no thanks to stock market volatility. that said, the company cancelled its road show for next week meant to attract potential investors and reported one source says the securities and exchange commission may ask more questions about a controversial memo the groupon ceo sent to employees that may violate fcc quiet period rules and contains financial information that is not in the original filing. let's check the closing bell. the dow s and p and nasdaq closed lower today, concerns over the debt crisis creeps back into the limelight. your index was unchanged. and elsewhere, apple says it's opening a store in hong kong this month and it tries to capture the surge in demand from china and neighboring countries. this will be apple's fifth store in the region and no opening date has been specified z lastly an overhaul is coming to the world's largest retailer. sources say amazon.com is testing a major redesign of the web site this, is video of the current amazon web site a cording to l.a. times the s

>> yes, that's how the groupon deal works.he groupon deal works, so yeah. >> do you feel it's fairly promising you will have 15 takers, or is it an avenue to get more attention for your university? >> no, we're optimistic about it, and we want to raise awareness. our other goal is to raise awareness of the opportunity and there are a lot of people looking to take a new direction, and there are those that say i wanted to be a teacher, and there is a way for them to explore that. this is a way to do it at national louis university. >> do you know how many you are so far? >> this morning, we are at five. >> so if this works out, great, like you are hoping, 15 takers, and any chance there might be another curriculum or class that might be offered with the same kind of deal? might this just be the beginning? >> if this is promising, we will definitely do it. again, it's a way for people to explo explore, almost test drive, before they have to commit to a whole new program. >> thank you for your time and all the best. >> thank you s

. >>> groupon has a new feature. the online coupon company is about to launch a customer loyalty program where merchants can offer rewards to those who use their products. the move is seen as a new way for groupon to generate revenue as it moves toward its public stock offering. groupon admitting to making less money than earlier thought. it was reportedly offered as much as $6 billion to sell out to google but it declined that offer. >>> day two of the trial of dr. conrad murray, who faces a charge of involuntary manslaughter. a security guard testified he saw murray sweating and nervous, trying to revive jackson while inquiring if anyone knew cpr. jackson's personal assistant testified about getting a frantic voice mail call from murray minutes after the doctor realized jackson wasn't breathing. >> it was dr. murray. i can't quote it exactly but it was, call me right away, call me right away, thank you. to that effect. >> and were you asked to call 911? >> no, sir. >> a security guard testified that jackson's two o

and there is a report saying groupon's ipo is back on track and "new york times" reporting today the stock sales happened early as middle of the month. and actors suffering through a wave of pr, groupon says it was postponing ipo because of market volatility. one had to do with a memo that made it to the press, may have violated sec rules. in san francisco, i'm emily chang for bloomberg west. >> and i know you had an analyst talking about the plan. what is his take on this? >> and there is a lot of controversy. we had senior research analysts in new york on our show today. he said that based on reports he has seen, we have to assume groupon and sec have come to an agreement and that this will get its ipo out of the door. he says it's likely this will happen by the end of the year. and still could it have serious consequences? he says that he doesn't seem to be a significant problem. you'll appreciate this. we interviewed the new giants eco, talking about how giants are one of the high tech teams. all he would say is that he wants to spend more time with his kids and that is it that i

how about groupon and zynga. >> adventure. it's in my blood. >> reporter: zynga calls it adventure world. investors will probably call it another reason to believe in the company. on the other hand, groupon's situation is no gain. it's not profitable and now says they will reevaluate the planned ipo. >> groupon has an issue. the retailers are complaining they're not making money. you see a lot of uncertainty about the financial information that goes around. >> rob tracks tech companies. he says while groupon is risky, zynga would make a better investment. >> if there is an exception, this would be the kind of company that can be the exception. they have a lot of good followers. people are excited about the property. they're able to demonstrate success after success after success. >> that is real adventure. >> reporter: with markets and investors skiddish, maybe a little gaming can bring back their appetite for adventure. >> this looks like a sustainable model. they are profitable already. it's much more linear. much less risk.

meanwhile, groupon is reportedly putting its i.p.o. on hold. the "wall street journal" reports the daily deals website company blames the move on market volatility. groupon has also received questions from the securities and exchange commission about an internal memo that lashed out at critics for questioning its growth and track record. and tom, it looks like investors have cooled off on another recent i.p.o.-- dunkin donuts. goldman sachs told clients today to sell shares in dunkin brands, the very company that goldman brought public as a lead underwriter just a few weeks ago. >> tom: we have yet to see a positive session in the month of september for the major stock indices. here's today's trading for the dow. the lowest level was hit just before 11 a.m. eastern time. by the close, the index had dug itself partially out of that hole, ending with a loss of about 100 points. banking stocks again saw the brunt of the selling. bank of america and j.p. morgan each fell more than 3%. citi dropped 2.5%. today was the first trading day after the fed

. >>> groupon may delay its plans to go public, according to the "wall street journal" the daily deals website is reconsidering its initial public offering of stock due to concerns about the stock market stability. earlier this summer groupon was hoping for an ipo valued near $30 billion. >>> one of the biggest hassles at the airport could end eventually. taking off your shoes at the security checkpoint, homeland security janet napolitano says it will happen as soon as we get devices that can scan your shoes while wearing them. right now a device does not exist. >>> now it's legal to walk around naked in san francisco, it is fran after all but the city's supervisor has introduced legislation to require nudists to cover public seating before they sit down and cover themselves before entering a restaurant. he calls it a cleanliness issue. terrell i know where you're taking your next vacation. >> the people who usually shouldn't be naked are the ones that always are. >> that's why the whole new restaurant rule. >> not hot at all. ashley morrison here in new york appreciate it. >>> the mov

news is piling on for groupon. >> all right. thank you very much and have a good weekend. >> lovely weather this friday. and there is hopefully extending into the weekend. >> there is a low that is destabilizing the atmosphere, into the weekend things start to heat up into higher elevations we can see lightning strikes and widely scattered thunderstorms. and this is widely scattered. there is fog near the coast and they're not pushing across the bay yet. there is a live view looking over san francisco. and we've got clear views now and fog has begun a naush will probably happen later. there is a look at fog at the coast. heat inland, thunderstorms scattered this afternoon z some storms could work towards the bay area. now looking at inland heat, 90 degrees in concord. 96 livermore z 93 fairfield. low 80s in parts of the north bay. 80 degrees in san jose. 61 here in san francisco. highlights are these. foggy at the coast tonight and locally over the bay. a chance of thunderstorms tonight over the weekend and fire weather concerns

bloomberg news learned it's looking less likely groupon will go public before the end of the year. fcc could order a cooling off, forcing the company to wait a bit longer, we'll keep you updated as news unfolds. now, let's take a look at the closing bell today. there is a green arrow as cross the word. -- board. your bloomberg index closed higher today with help from shares of oracle. lots of questions are being raised about ipad production at apple. this, after an analyst said several vendors are seeing a 25% cut in 4th quarter ipad orders. after that, another analyst said apple moved 4th quarter production into the 3rd quarter to ensure there are enough ipads available, then just about an hour ago another jp morgan analyst said, quote, apple is fine and he doesn't share the same view as colleagues in asia. there is controversy that is not unusual given the practice is secret. now, elsewhere, net flix will stream work -- dream works movies. the deal is a much-needed addition to the net flix library after talks to renew movies from stars movie channel broke douchbl you may recall t

. >> i am a user of sites like yours and groupon. i have gotten great deals.heard they get a bad rap and people never came back. how can you turn that around and use living social to get people to come back? >> i think the first thing to remember is it's a marketing program. if you don't think about it in a smart way that makes sense for your business, you may struggle with having a positive expoorns. there's three people involved in every program we run. there's living social, the customer that buys and the merchant. all three of them need to feel like they won and happy at the end of the day to have a successful program as well. >> you said provide values. do you mean in the value itself? >> i think value can be construed in a couple of ways. cost saving, it can be having a fantastic experience and feeling special when you are there. people are interested in finding out new things, why should i go back to this merchant? we bring them to the store and then it's really up to them to find a great, fantastic service to get them to come back. >> the next point is

find out why some entrepreneurs love groupon, and why others hate it. up next on "your business."

specifically about one company and get your thoughts on it because there's a big debate out there groupon ok it's pretty i.p.o. they turned out a six billion dollar offer from google they attempted to go public at a twenty thirty billion dollars valuation there's one school of thought that is looking at groupon end the words ponzi scheme have been mentioned yet is this a fair or unfair the most interesting argument. is that you know the original investors of say a lot of money out of a company already they've already made tons of it and so the company has never been profitable and yet you have early players including the c.e.o. who've already cashed not totally cashed out or anything but have you know taken a lot of cash out and there's so now they're still cash hungry but it's not a ponzi scheme in les there is no business there and there is a business there and they're making more and more money from their existing customers have excellent customer loyalty growth are still crazy businesses generally still like it though there are issues and lots of competition so it's not a ponzi scheme

groupon was looking at a $3 billion ipo earlier this summer.have placed the valuation at about $30 billion on the daily deal site. now they are looking at about a $15 billion valuation on groupon just facing too many head winds out there in the economy and the stock market. market coming back, had a couple of rough sessions, up 147 points on the dow. nasdaq up 40. s&p up b 17 this morning. yahoo stocks are up a little more than 6%. >> apparently the investors are applauding the outster of carol bartz. >> reporter: they gave her a little time and didn't see any improvement from yahoo and they decided that that was enough. they are looking forward to seeing what happens next in the company whether or not it can stay on its own on whether or not somebody will buy them. >> thank you, jason brooks with kcbs and cbsmoneywatch.com. >>> california is one step closer to banning a traditional chinese delicacy. yesterday, the state senate passed a bill which bans the sale, trade or possession of shark fins. a key ingredient in shark fin soup. conservative

. >> how about connection with groupon and yelp ratings? on the face you'd think woibt a good thing. and in cases, the merchants reputations are being hurt. >> in many cases, what we're seeing is new research showing there may be hidden costs for business who's offer the daily deals. researchers from boston university looked at 16,000 groupon and living social deals in 20 different cities and found in months after the deal, merchant's yelp ratings suffer. they dropped average rating scores from reviewer who's mentioned daily deals are 10% lower than scores of peers. and yelp pulled back n a daily deal visit saying offering deep discounts is uneconomic former chants but the real test for companies will be whether they can keep attracting merchants and generating long-term rev nu. it's looking like sometimes they can harm a business's long-term reputation. >> and sometimes they get overwhelmed. >> i got that whole foods deal today. >> you can't beat that. >> you can't. lovely weather out there. >> you can't beat the weather, things are warm i

and groupon says this will not have impact on operations and finally watch out, apple. amazon's upcoming tablet may give the ipod a run for its money, poised to become the biggest threat to the ipad. latest kindel expect to have had improved interface and double as a tablet computer, and amazon has tie that's will help whit comes to stocking the kindel with songs, books and videos. we'll be keeping a lookout for that. at bloomberg studios, i'm emily chang with blookberg west. >> this first day of fall, still beautiful out there. >> absolutely. >> this seems like we waited for summer heat to arrive. and take a look at temperature readings, 100 degrees in livermore. mid to upper 90s inland. around the bay and there is highlights, partly cloudy skies tonight with patchy fog. and there is a slight chance of rain sunday. and low temperatures tonight into low to upper 50s to mid-60s, and take a look at this satellite image. low to our south tied to the north with this clockwise circulation, these are working in concert to pull moisture in from our southeast and that may resul

this after showing groupon had fewer unique visitors last month compared to mid peak in june. one of the causes could be an oversaturation of the daily deals market. taking a look at another market. waits more than just a bad day for stocks today. market tanks after a huge three-day rally. your bloomberg silicon valley index closed down by almost 1.5%. take a look at sales of reality, fell after showing say it will stop playing for glasses that movie goers use when watching the films. so easy with forcing theater operators to charge for glasses which could reduce attendance for the screenings. >> thank you. >> and nobody wants to wear goofy glasses. >> it would be better if you didn't have to. it was warm out there today. >> yes. sandhya patel is here with the accu-weather forecast. not going stay this hot. >> tomorrow, cooling changes begin and we'll head into friday. highs so far warm along the coast. take a look at this. 86 santa cruz. 88 degrees in san francisco. we have really hot weather in places like livermore and san jose. mid-90s there. and there is morgan hill, 99 s

. >> living social takes a cue from groupon. why following the steps of the online coupon leader. we'll be live from bloomberg west. >> and time to check traffic. we're looking at skyway in downtown san francisco. pretty slow going in either direction whether to the lower deck of the bay bridge or down south. it's a crawl at this hour. coming back with more on the news at 4:00. >>> checking healthy living news a new type of brain scan developed at uc berkeley can detect images you're watching on movies and tv. take a look. volunteers watched on the left. a scanner watched their brains. using activity alone a computer made a rough reconstruction of what they've viewed. scientists say they'll may be able to reveal dreams. this could help stroke patients and whorjz have no way to communicate. >> and food and drug administration is maze phasing out an asthma inhaler because of the environmental impact. patients will need to switch to prescription only alternatives. the old inhalers contain a substance found in a variety of spray products. the action is part of an agreement signed by t

. >>> higher education just got cheaper am how one school is using groupon to cut the price of tuition. >> ready, set, let's flex. the top prize in a big muscle beach championship. coming up next. ,,,, -dad, why are you getting that? -that's my cereal. is there a prize in there? oh, there's a prize, all right. is it a robot? no. is it a jet plane? nope. is it a dinosaur? [ laughs ] [ male announcer ] inside every box of heart healthy cheerios are those great tasting little o's made from carefully selected oats that can help lower cholesterol. stickers? uh-uh. a superhero? ♪ kinda. [ male announcer ] and we think that's the best prize of all. ♪ navigating today's real estate market is complicated. you've seen the signs. that's why having the right real estate agent is more important than ever. at remax.com, you can find experts in short sales or bank-owned properties or commercial real estate, agents who can help speed up the process, no matter how intricate. and that's good news, whether you're trying to sell or hoping to buy. because the only sign you really want to see is "sold." nob

you can't use a groupon. this is big time. the jewels belonging to the late elizabeth taylor will be auctioned off. >> the "today show" got the first peek. it includes a 33 karat diamond ring, a present from richard burton and a 16th century pear-shaped pearl that once belong to napoleon. they are taking the diamonds, rubies and emeralds on a world tour. money raised will benefit the elizabeth taylor aids foundation. >> we'll send the hat around the newsroom to buy for janelle. >> good to see it's going to a good cause. >> thas for watching us. we'll see you again at 6:00. ♪ it was the best day woohoo! yes! ♪ it was the best day ♪ it was the best day ♪ it was the best day ♪ause of you [echoing] we make a great pair. huh?

in ipo news, groupon is back on track with initial offering plans and could go public as early as late october. meanwhile, facebook's public debut has been reportedly pushed back to late 2012. the securities and exchange commission is under review over allegations documents from early investigations into several major banks and convicted ponzi schemer bernard madoff were illegally destroyed. s.e.c. officials say the former policy that allowed staffers to discard documents has since been revised. >>> finally, say good-bye to brownies baked under a bulb. energy efficiency has sparked a modern makeover for the easy-bake oven. the old school 100-watt incondescent bulb has been replaced with a heating element like you'll find in a grown-up stove. >>> mariano rivera's pursuit of the major league saves record is put on hold. apparently it wasn't time to forgive and forget at last night's dodgers/diamondbacks game. your early morning sports headlines are straight ahead. >>> and our well-advertised taste of fall is moving into the eastern half of the country. your forecast is coming up. you're

. >>> those groupon coupons you get a great for consumers. are they bad for small business? why some

in ipo news, groupon is back on track with its initial public offering plans and could go public as earlys late october. facebook's public debut has reportedly been pushed back to late 2012. the securities and exchange commission is under review over allegations documents from early investigations into several major banks and convicted ponzi schemer bernard madoff were illegally destroyed. s.e.c. officials say the former policy that allowed staffers to discard documents in closed cases has since been revised. >>> finally, say good-bye to brownies baked under a bulb. energy efficiency has sparked a modern makeover for the easy-bake oven. the old school 100 watt incandescent bulb has been replaced with a heating element like you'll find in a grown-up oven. >>> mariano rivera's pursuit of the major league saves record is put on hold. apparently it wasn't time to forgive and forget at last night's dodgers/diamondbacks game. your "first look" at sports is straight ahead. [ female announcer ] investing for yourself isn't some optional pursuit. a privilege for the ultra-wealthy. it's a necessity

groupon has come up with another way for bargain hunters to save money. raise money from wary investors. the additional savings will be offered three customer loyalty program that groupon is going to unveil today. merchants who joined the service said a spending target for customers to reach before they qualify for an even steeper discount. >> traffic is a little better in the bay area, that is the sign of a bad economy. according to the urban mobility report, the san francisco metropolitan area is now the seventh most congested in the u.s.. many people say that unemployment is at the reason because of your people are driving to work. washington d.c. has the worst traffic in the nation. we will be back with more in just a couple of minutes. we want to take a live look outside at the san mateo bridge. we are all excited to talk baseball with gary radnich japan who is livid over how they look in the money ball. we will be right back. >> the great gary radnich. good morning. >> good morning. i >> baseball. we are talking baseball today since it is the last d

and many others growing fortunes catapulted them including a leap in, as in the and groupon.k the chrysalis visitor kron4 facebook fan page. >> the transfer upon the dodgers as they try to keep their playoff hopes alive. with a little help the giants could close the gap in the wild-card race gary has that story in all sports next. >> coming up how to keep one particular item off the beach the wrong time to heavy spending time in the slammer in the next edition of people behaving badly. and a forward thinking spirit. at bank of america, we've been fueling economic growth here for over a century. today we're investing in innovations that will define our future. every day, we're working to help set opportunity in motion. from financing a solar project for the milpitas school district to funding the institute at golden gate. because when you're giving, lending, and investing in more communities across the country, more opportunities happen. now's a great time to get at&t u-verse tv. make the switch! [ female announcer ] call now to get at&t u-verse tv for six months. hd-ready dvr

. >>> and groupon has come up with another way tore bargain hunters to save money.will unveil it's customer rewards program. they will set a spending target for customers to hit, and once they reach that number, customers will qualify for a steeper discount on products and services. >>> coming up, will oakland change the rules for punishing the owner offers rundown properties. >> the bay area bracing for the arrival of a different kind of traveling circus. >>> why the south bay is getting a one, two punch, and promoters hope it will be a knockout. >>> welcome back to the morning news. time now is 5:55. oakland plans to stop its controversial practice of placing liens on property us they consider an eyesore. this came after the city was criticized by a civil grand jury for its code enforcement practices. oakland's fees will now be evaluated and compared to other cities. >>> well, a baby who fell from a third story window of his marin city home suffered no major injuries. it happened last night at a home. it is reported that a 15-month- old fell 20 feet after apparent

the first presidential groupon, i guess.ner with the president cheaper than a hot pocket? it shouldn't be. and who are the people who go, $5, too much. for three, i will do it. here's the ad they released today on the internet. and it is an interesting idea. i've never heard of a presidential raffle before. >> president barack obama wants you to be his guest for a special dinner with barack. sit down with our commander in chief and share your stories and ideas for our country. to register, donate as little as 3 gz to obama for america before september 30th. don't miss out on dinner with barack. >> prize not transferable. valid only in the 50 states. $3 winners to be seated in the coat closet with joe biden. >> jimmy: oh, that's fun. up get to see the president's coat. yeah, the president is -- he's doing whatever he can to appeal to voters right now. he held an event at the white house yesterday call ed -- is that good spanish, guillermo? >> excellent. >> jimmy: yeah. now you're laughing at me. what does that mean, by the wa

there are opportunities for overtime the workers have asked for opportunities to make overtime also grouponhas come up with another way to save money with the additional savings will be the rule i customer loyalty program merchant to join the service moi will set up limit set for deeper discounts >> a look from the east bay at walnut creek traffic is light nice morning . >> in a of a typical separate cisco style people or are oblivious >> the city of san francisco and construction isn't goldblum workers are to wear reflective gear and hard hats it is also a short cut many wells goal under the tape but to make their shortcut hardware this is the traffic supervisor. he has to stop drivers from parking in the construction of a sound whezone. she is the g garage and open >> these grant through the construction, whi one >> effuse the caution tape bonds hardhats go our world where in san francisco stanley roberts kron 4 news >> if you know of anyone behaving badly please contact stanley when at kron 4 dot com and all little supports when >> the giants are trying to end when he tripped rounding oc

our headlining groupon experience which is an 8,000 person concert venue. we have big and rich on saturday night. styx on sunday night. ed on sunday also and rusted root on monday. >> oh, fantastic. the web site for today for the quick $100,000. >> the taste of d.c..org. >> we'll link that to wusa9.com. andrea, anny, over to you. >>> thank you very much, mike. anny and i, look for us at fall for fairfax. you'll be there about when? >> about noon and 2:00 before coming in for the weekend shift. >> it will be warmer when you see anny but definitely wear a jacket or something, right? >> this weekend, get out the fall clothes because we're look at big changes temperaturewise coming this way. but today, still looking really nice. one more day warrants more sunshine. here's your bus stop forecast as the kids are getting ready. put a sweater or jacket on them this morning. it does feel a lot cooler outside. the humidity has dropped quite a bit. mostly sunny. temperatures in the 50s and 60s to start off your day. here is a look at the day planner for the rest of to

and you conceive traffic is moving well we are looking at a cool down for later on today >> >> >> groupon ripon we saw two percent inflation in the last month, ended at the end of august and would dow futures were up 60 and then we heard the report of a weekly unemployment pulling back from some of those games in which at the opening bell ... >> united autoworkers union extended its contract with the general motors and chrysler they needed to reject a deadline when for a new agreement which was in the new coned tract is finally reaching the membership will vote on the contract >> an increase on social security taxes it would only apply to people that are earning over $200,000 a year the plan is designed to keep social security solvent and for the next few years. 15 renewable energy companies from may move with and at the end of month and one this is all after excellent drama and fremont and with and it went a left the government with a $530 million tab with >> this is a look at the james lick freeway we have the fog but traffic is moving smoothly. so...what do you think? i'm not crazy abo

"its success and search hasn't stopped companies like facebook, twitter or groupon from finding hugeience online so innovation is still happening in other companies despite google's dominance in search." google has hired over a dozen lobbying firms over the last several months to increase influence on capitol hill. the hope in all these efforts is to possibly fend off a federal antitrust investigation. this hearing begins at 11:00 our time and should last about two hours. live in silicon valley, i'm matt bigler for cbs 5. >>> thank you. >>> 6:39 now. it's not just google executives. the top two executives from fremont-based solyndra are expected to plead the fifth. both are scheduled to appear friday before a congressional committee investigating the solar company's sudden shutdown. yesterday their lawyers said both will invoke their right not to answer questions. the federal government pumped more than a half billion dollars into solyndra which went bankrupt last month. and we have also learned that california actually helped out solyndra as well with a $34 million tax break last no