Google Inc (NASDAQ:GOOG) takeover buzz acts as catalyst for Groupon Inc (NASDAQ:GRPN) shares

Investors of online coupon provider Groupon Inc (NASDAQ:GRPN) had a Gala time when the share price increased by 23% on New York to close at $4.69, due to the speculation in market of internet giant Google Inc (NASDAQ:GOOG) considering buying the company. The share price was at its highest since last three weeks.

The stock reduced 77% of its loss from the time of its IPO in November 2011.

According to an analyst at the Telsey advisory group, Tom Forte, Groupon Inc (NASDAQ:GRPN) plunge to a market value of $3.07 billion may have ignited a takeover interest from Google Inc (NASDAQ:GOOG) side. Earlier this year Google Inc (NASDAQ:GOOG) had an interest in acquiring Groupon Inc (NASDAQ: GRPN) for a sum of $6 billion before the firm went public.

Spokesman Paul Taaffe for Groupon Inc (NASDAQ:GRPN) as well as spokeswoman Katelin Todhunter-Gerberg for Google Inc (NASDAQ:GOOG) did not comment over the speculation even though analyst Tom Forte revealed that considering the price at which Groupon Inc (NASDAQ:GRPN) is trading at it is definitely a takeout candidate for Google Inc (NASDAQ:GOOG).

Since Groupon Inc (NASDAQ:GRPN) went public, the growth has slowed down and the daily deals demand has decreased. Keeping the core business afloat and foraying into new areas for new sources of revenue has been a Herculean task for the Chief Executive officer Andrew Mason.

The share price of Google Inc (NASDAQ:GOOG) is down by 1.00% to close at 684.21 USD.

The share price of Groupon Inc (NASDAQ:GRPN) is up by 22.97% to close at 4.68 USD.

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Published by Viraj Shah

Viraj Shah has done M.Com (Finance) and currently pursuing CFP. He is a technical analyst who tracks US markets along with other global markets like India very closely. He is very passionate about stocks and believes that money can always be made in market.

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