Groupon reportedly seeks a buyer as stock languishes: Recode
- Groupon is looking for a buyer, according to Recode.
- Potential buyers could include Alibaba, which bought about 6 percent of the company in 2016.
- Groupon currently has a $2.5 billion market cap.
Groupon, the company that pioneered local online daily deals , is looking to be bought out, according to report in Recode.
According to the publication, executives and representatives of the Chicago-based company have recently stepped up efforts to lure in possible buyers, but it is unclear whether that endeavor has been successful.
Alibaba, which bought 33 million shares (nearly 6 percent of the company) in 2016, has been reported as a potential suitor, as well as IAC, whose CEO Joey Levin, is a Groupon board member.
In May, Groupon reported better than expected first quarter earnings on lower year-over-year revenue. At the time, CEO Rich Williams told “Mad Money’s” Jim Cramer that Groupon was on “a bit of a tear on the partnership side,” citing Major League Baseball ticket sales, Grubhub and advertising that starred actress/comedian Tiffany Haddish.
Amid a digital push and a drive to bring more brands and small businesses onto the platform, the company's stock has languished under $5 per share — far below its post-IPO high. Groupon's market capitalization was once valued at $16 billion, but is now around $2.5 billion.
Groupon did not immediately respond to CNBC’s request for comment.