Shares of Groupon dropped more than 22 percent on Thursday following the company's announcement that it had acquired competitor LivingSocial for an undisclosed sum. The company's CEO Rich Williams said he was confused by the sell-off, and that the acquisition was "non-material."
"It was a non-material acquisition. We look at that in multiple ways, both the financial side and now with what we know about with integrating businesses and operating this business well; we don't see it as a material distraction from our day-to-day operations," Williams told "Mad Money" host Jim Cramer.
Groupon made a significant comeback this year, with the stock up more than 70 percent for the year as of Wednesday. When it reported earnings, both the top and bottom line numbers were slightly better than expected. It is also growing its user base and rationalizing its global footprint.