Groupon Shares Skyrocket on News that the Company Is Searching for a Buyer

A report in Recode on Monday helped shares of Groupon surge as the report revealed the deal and voucher company could be up for sale.

The digital coupon dealer is reportedly looking for a buyer.

Shares exploded 7% after traders learned that Groupon is shopping around for a buyer.

According to the report, Groupon has increased its efforts in the last month to find potential buyers.

According to Recode, Alibaba could be a potential suitor. The company had grabbed an almost 6% stake of the company two years ago. Another potential suitor is IAC, whose CEO Joey Levin is a member of Groupon’s board.

According to Cowen analysts, QVC and Zulily could also be suitors. The analysts wrote, “There could be synergies between these retailing entities.” The firm has a $5.75 price target on Groupon with a “market perform” rating.

DA Davidson analyst Tom Forte wrote, “If the public markets are not giving the company the value we believe it deserves, maybe the right strategic buyer would.” He has a price target of $8.

Groupons, CEO Rich Williams said back in May, “We are focused on establishing an indispensable marketplace that customers will use again and again. That’s at the core of being a daily habit in local commerce and we believe we are well on the way.”

Disclaimer: We have no position in Groupon Inc Common Stock (NASDAQ: GRPN) and have not been compensated for this article.