CHINA TOPIX

11/22/2024 03:32:52 am

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China's Alibaba Buys 33 Million Shares of Groupon

Alibaba Group signage is posted outside the New York Stock Exchange

(Photo : Getty Images) Alibaba has bought 33 million shares of Groupon to become the fourth largest shareholder in the company.

China's Alibaba has bought a 5.6 percent stake in Groupon, making it the fourth largest shareholder in the online deal site. Groupon shares are still down 61 percent over the last 12 months, despite a 29 percent increase last week Friday.

The Chinese e-commerce giant has reportedly owned 5.6 percent of Chicago-based Groupon as of December 21, according to a regulatory filing on Friday. This translates to 33 million shares of Groupon.

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Aside from Groupon, Alibaba has also accumulated stakes in other companies like online retailer Jet.com, technology start-up company Magic Leap and a transportation network company Lyft.

A spokesperson for Alibaba has declined to immediately comment on the filing. Meanwhile, Bill Roberts, a Groupon spokesperson, said that the company has not been aware of the Alibaba's stake, not until Friday's filing.

He added that Groupon is pleased to know that Alibaba has the same view as the company, especially knowing that Alibaba has a reputation for being a long-term holder.

For the first time in four years, Groupon stakes surged 29 percent to US$2.89 at closing last week Friday in New York. This is the biggest increase in a single day the stock has experienced since November 4, 2011, when the company went public for the first time. The initial public offering was at $20 a share.

On Thursday, Groupon reported its fourth-quarter results that surpassed analysts' predictions because of surging sales in North America. The company said its profit was at four cents per share, exceeding estimates of analysts at a break-even point.

Groupon has exited 17 countries and currently operates in 28 as it continues to streamline its operations internationally.

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