Yelp Shares Move Higher on Rumor that Groupon is Showing Acquisition Interest

Shares of review platform Yelp Inc. were sailing in after-hours trading on Wednesday after Wall Street digested a report that Groupon Inc. could be interested in an acquisition.

According to The Wall Street Journal, Groupon is seeking a large acquisition amid unrest from some prominent investors.

Two unnamed sources familiar with the matter told WSJ that Yelp could be that acquisition. A takeover or merger could create synergies saving at least $200 million, they said.

Shares of Yelp were up a little over 3% on the news.

Robert Chapman of Chapman Capital LLC, told WSJ that he sold his 1.5% stake in Groupon on Tuesday because he considered the path of a large acquisition too risky.

“It is reasonable to conclude that a relatively large acquisition by Groupon is forthcoming,” said Chapman.
In its latest quarter, Groupon reported adjusted Ebitda of $47 million while Yelp’s adjusted Ebitda was $55 million at the end of June.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.