Groupon is considering acquiring another company and insiders think Yelp could be the target, The Wall Street Journal reported on Thursday, September 12.
“It is reasonable to conclude that a relatively large acquisition by Groupon is forthcoming,” Robert Chapman, founder of California investment firm Chapman Capital, told the WSJ.
Chapman sold part of his 10 million share stake in Groupon on Tuesday, September 10, because he considers a large acquisition too risky for Groupon. According to the Journal, he wants the Chicago-based daily deals company to buy back more of its own stock.
Sources familiar with the situation told the paper Yelp “would be a logical matchup” and the combination of the two companies could bring as much as US$1 billion in earnings before interest, taxes, depreciation, and amortization. A merger could save at least US$200 million due to synergies, the sources said.
“We will be closely monitoring [Groupon’s] activity to see if it does attempt a larger-scale and potentially transformative deal, which would be a riskier strategy,” Tom Forte, an analyst at D.A. Davidson & Co, told the news outlet.
A combination also could create an online marketplace in which merchants could offer deals and customers could read reviews, make reservations or purchase goods or services.
Full Content: Wall Street Journal, PYMNTS
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK’s CMA Investigates Education Software Company for Market Abuse
May 14, 2024 by
CPI
Schumer Urges FTC Caution on Chevron’s $53B Hess Deal Over Gas Price Fears
May 14, 2024 by
CPI
Amazon Urges US Judge to Block FTC Probe into Data Preservation
May 14, 2024 by
CPI
Colorado Makes History: First State to Enact Comprehensive AI Legislation
May 14, 2024 by
CPI
Class Action Settlement Reached in Cheerleading Monopoly
May 14, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI