Groupon Stock Price Shoots Up Based On Speculation Of Google Takeover
Groupon’s stock suddenly surged earlier this week. Why did this happen? Because there was speculation that Google may acquire the company. Groupon turned down a $6 billion acquisition offer from Google in December 2010 and chose to raise $950 million in Series G one month after that.
Groupon went public in November 2011 and their stock price has been taking a beating ever since. Their stock price especially took a hit after the SEC probed the company and they reported a net loss of $37 million in their first quarter as a public company. Currently Groupon’s market cap on the NASDAQ is around $3.07 billion.
The company’s stock price increased to a high of $4.69 based on the speculation, which is the highest it has been since October 19th. The biggest question I have is why would Google want to buy out Groupon when they have Google Offers. Groupon has so much overhead, which is why they are struggling to make a profit.