trending Market Intelligence /marketintelligence/en/news-insights/trending/YNHVbUB6JQfiqcmQJ6cXdw2 content esgSubNav
In This List

Report: Groupon seeks acquisition as shareholder pressure rises

Blog

Broadcast deal market recap 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Using ESG Analysis to Support a Sustainable Future


Report: Groupon seeks acquisition as shareholder pressure rises

Groupon Inc. is planning a major acquisition as investors pressure the company to take steps to improve its financial performance and stock price, The Wall Street Journal reported Sept. 11, citing three people familiar with the matter.

Two of the sources reportedly said Groupon could be pursuing Yelp Inc., in order to increase its value. The combined entity would generate an EBITDA of between $900 million and $1 billion, and a merger could save them both at least $200 million, the report said.

At least one investor has expressed support for the potential deal, one of the sources reportedly said.

Both Groupon and Yelp declined to comment on the matter, according to WSJ.

"It is reasonable to conclude that a relatively large acquisition by Groupon is forthcoming," Robert Chapman, founder of Chapman Capital LLC — which has been growing its stake in Groupoin in recent weeks — reportedly told the Journal.

Chapman sold part of his 1.5% stake in the daily-deals platform on Sept. 10 because he believes that such a big acquisition would be too risky for the company, the report said. He then wrote to Groupon CEO Rich Williams on Sept. 11 to call for a sale of the business, adding that other investors are concerned about a possible acquisition ahead of a potential market correction due to the lack of unsuccessful deals under the existing leadership team, the Journal added.