4.81, +0.45) has jumped 10.3% premarket amid reports that the company is
looking for a buyer.
Shares of Groupon have had a woeful run since the company's IPO in late 2011. The stock peaked at $31.14 on its first day of public trading, and never revisited that level. Groupon elected to go public after rejecting a $5.75 bln acquisition offer from Google in late 2010, partly due to a belief that the company had plenty of room to grow on its own. At the end of its first day as a public company, Groupon had a market capitalization of $16 bln, but the company was unable to sustain that valuation. Currently, Groupon has a market capitalization of $2.46 bln.
Management's expectations for aggressive growth never materialized and Groupon stock continued weakening until finding support in the mid-single digits, where it has spent the past three years. The company has struggled to find its position in the market place, having cycled through several turnaround strategies.
In 2017, Groupon reduced its global presence to 15 countries from 47 in 2015 while also removing some low-margin products from its offerings. The company improved the response time of its customer service team and managed to improve its year/year gross margin performance, but the efforts have done little to help Groupon compete with a giant like Amazon (AMZN).
On Saturday, Recode reported that Groupon executives and bankers have reached out to other companies to evaluate interest in Groupon. Recode noted that IAC (IAC) and Alibaba (BABA) are among potential acquirers of Groupon due to existing links with the company. Alibaba owns a stake in Groupon while IAC's CEO sits on Groupon's Board of Directors.
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