Boston, MA 11/01/2013 (wallstreetpr) – Groupon Inc (NASDAQ:GRPN) is a local player having a presence in e-commerce that usually connects sellers to end users by offering various goods and services at a discount rate. Each day the company e-mails its subscribers various offers for their goods and services, and each subscriber is targeted on the basis of their personal preferences and location.
In a recent development, the company, has acquired Side Tour. It is a company that helps people to discover and host great local activities and books. The company has not disclosed the terms and conditions of the deal.
The company also acquired Blink. It was a last minute acquisition by Groupon as Blink will be rebranded as “Blink by Groupon”. Blink works with more than 2,000 hotels, which are spread over eight countries, but it will continue to operate separately. The group developed will be able to create the integrated experience similar to the earlier deal.
The management of the company stated that they are planning to buy back some of their outstanding shares in the market. The total amount set aside for this activity is $300 million.
The company was unable to close down the law suit which is currently going in regards to providing misleading financial prospects and internal controls before making offerings to the public. The key reason for the suit was because the company has made use of improper refund accounting to show growth in its revenue. The suit also states that, since the company was going public, they intended to show a higher valuation in order to garner a higher amount. The company was valued at around $20 billion at the time of going public, which means $20 per share. However, after couple of months, the revised price of the company came down sharply to $2.60 per share.
The company was able to gain as much as 28%, and it was one of the biggest gains for the company after the period during which the company was struggling due to the internet discounts.
