Will Yahoo Grab Groupon – What’s Cooking up in Acquisition Gallary

Must Read

New RBI Guidelines Force You To Memorise All Of Your Card Details

It's time to get your brain prepped to do some much-needed homework and commit to memory the...

Bounce Layoff: Bike Rental Startup To Pivot Into New Vertical

Bike-rental startup Bounce has laid off a massive chunk of its workforce in a bid to survive...

Zomato Beefs Up Valuation Prior To IPO In Its Latest Fundraising Round!

Before heading to the stock market with an IPO, the homegrown food delivery startup Zomato beefs up...

The success of Groupon, a revolutionary online discount Coupons Company, has made many industry giants to closely monitor the growth of the company. In total lifetime of just 2 years Groupon has reached to the level where people starting comparing its growth with search leader – Google. With such exponential growth, it’s no surprise if Groupon decides to pickup finance bags by selling off the company and that is something which Yahoo is eyeing, as reported by Kara Swisher.

Yahoo is evaluating various options to acquire a big content company which should boost the presence, brand and moral of the employees, especially after the recent departure of few senior executives. Besides AOL and Demand Media, which are in acquisition radar of Yahoo currently, Groupon is tempting Yahoo to jumpstart.

Groupon – A company which is currently dominating social couponing industry across the globe – can be the best and probably the most preferred choice for Yahoo by all it means, as per sources. If such acquisition comes into existence, Yahoo will regain its lost position in Internet arena and also be in the hot space around the local purchasing and consumer information.

Advertisements

Will Acquisition Make Sense for Yahoo ?

From the day of inception Group has achieved various milestones successfully and has been reached to valuation of USD 1.3 – 1.5 Billion in recent round of funding. Company is expecting to secure the revenue of USD 200 – 300 million this year. With such scenario Yahoo will have to shell out $2.5 Billion to $3 Billion for such buyout which is not going be easy for the company.

Yahoo is currently sitting on $3 Billion cash reserve and market cap of $20 billion. To give a final shape to anticipated acquisition either Groupon will have to accept Yahoo stocks or Yahoo will have to float a bunch of debt. At the same time Yahoo will also have to go through the tough round of board’s approval process which are already tightening the nose of the company.

Anyhow, Deal is at very early stage, says Kara Swisher.

Groupon’s Take on Acquisition report:

Advertisements

If we follow the earlier moves of Groupon on similar prior efforts by various companies, Company never entertained such initiatives. Groupon CEO Andrew Manson is very optimistic about the future growth and surety of success. However, when SAI tried to check the pulse of Andrew on such report, all they got “ Uggggghhhhh” as a response. Interestingly, the last line of Andrew was inheriting lots of mean – “I’ll call you about something that you’re more willing to talk about soon.”

4 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Reliance Aims To Launch Its Own Version Of UPI-Like Payments Network With Google And Facebook!

The mammoth tech-petroleum conglomerate Reliance aims to create its own version of UPI! According...

TikTok Coughs Up $92 Million In Fine For Harvesting User Data Of Minors!

The popular short-form video app TikTok simply can’t catch a break! Besides dealing with its botched acquisition now stuck in limbo, the...

Facebook Continues Taking A Jab At Apple With New Marketing Campaign

Even after a month of attacking and accusing Tim Cook Zuckerberg is still very much fizzle out from Apple’s major blow to...

Xiaomi Levels Up On India Manufacturing: 99% Smartphones Are Made In India

Xiaomi really is digging its heels to live up to a commitment. One of the first adopters of the...

After SMS, WhatsApp Now Becomes A Threat To Cell Calling: 1 Billion And Counting

It already buried the SMSes in the ground. Now, traditional cellular calling is next on the hit list. The number of WhatsApp...

Flipkart Quickly Learns From the Mistake Amazon Did: Setting Up A Level Playing Field For Sellers!

Unlike Amazon which allegedly implemented unethical strategies to tackles India’s FDI policy for e-commerce marketplaces, Flipkart plans to do it right!

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This