Yelp stock gains after report of Groupon acquisition interest
Shares in Yelp Inc. (YELP) gained in after-hours trading Wednesday following a report that Groupon Inc. (GRPN) could attempt to acquire the company. The Wall Street Journal reported Wednesday afternoon (https://www.wsj.com/articles/groupon-said-to-be-pursuing-acquisition-as-business-faces-pressure-from-investors-11568239576) that Groupon is seeking a large acquisition amid unrest from some prominent investors. Two anonymous sources told the Journal that Yelp could be the target, even though Yelp is worth substantially more than Groupon. At Wednesday's close, Yelp had a market capitalization of $2.46 billion, while Groupon was worth $1.71 billion, according to FactSet. One investor, Robert Chapman of Chapman Capital LLC, told the Journal that he sold his 1.5% stake in Groupon on Tuesday because he considered the path of a large acquisition too risky, and had been trying to convince management to instead buy back more stock or sell itself. Yelp shares gained about 3.5% after the report hit Wednesday afternoon, while Groupon shares were not immediately affected.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 11, 2019 18:20 ET (22:20 GMT)
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