Groupon shares soar as rumors of a Google takeover spread
It was almost two years ago to the day that Groupon, the online coupon distributor, rebuffed Google’s rumored $6 billion take over offer for the company. At the time Groupon was a relativity new company that was still in private hands. The following year it raised $700 million in an initial public offering and become the largest IPO by a U.S. Internet company since Google Inc raised its $1.7 billion in 2004.
As with most Internet IPOs, Groupon’s stock has declined over recent years but has rallied 23 percent to $4.69 in New York, closing at the highest price since Oct. 19. However its value is far less than the original $20 a share at its IPO in November of 2011. This makes Groupon worth around $3 billion according to share price.
Groupons core business is the delivery of coupons for deals and savings on a whole range of services and goods and is, by its nature, a form of local advertising. Google would be interested in buying Groupon to boost its local business online advertising activities.
Adding fuel to the rumors, Groupon also canceled an upcoming appearance at an investment conference hosted by Sterne Agee, the privately-owned brokerage firm. A spokesman for Groupon declined to comment on the takeover speculation, as did Google.