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Groupon shares slide in trading after earlier rally on Google rumor

Updated: February 28, 2013 1:01AM



Shares of Groupon fell 9.3 percent, or 44 cents to $4.25 Monday, after rallying Friday on talk of a Google-Groupon mashup.

An analyst knocked down the rumor Monday. Marketwatch reported that Evercore Partners analyst Ken Sena said in a research note that: “We find no basis for these claims,” adding that a Google acquisition of Groupon was unlikely because of the poor condition of the daily deal business.

On Friday, Groupon’s stock soared 23 percent, up 88 cents to $4.69 a share, after Telsey analyst Tom Forte speculated that Google might be interested in acquiring Groupon now that Groupon is worth roughly half Google’s first offer. Google offered to buy Groupon for $6 billion in December 2010.

“Where the stock is currently trading, it’s a takeout candidate,” Forte said, Bloomberg News reported.

The stock is 78 percent below its initial public offering price of $20.



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