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.