Groupon shares slide in trading after earlier rally on Google rumor
SUN-TIMES STAFF December 10, 2012 7:16PM
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.