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Groupon is eyeing acquisition of Yelp due to pressure from its existing Investors

Groupon

Groupon, an American worldwide e-commerce marketplace connecting subscribers with local merchants is eyeing acquisition targets of an online-review company Yelp; as agitated investors complain about the company’s financial performance and stock price, according to The Wall Street Journal. Due to sliding down of Groupon’s by 7%, this marriage of the 2 firms could generate more than $200 million in cost savings, according to The Journal, which cited people familiar with the situation.

This merger could also lead to leveraging of Groupon’s coupons and impactful business deals in order to create other synergies. According to a well known daily, The Journal, Investors have been pushing for Groupon to find some way to increase its value. The company reported revenue of $532.6 million in the second quarter, down more than 13.5% from the same period last year. Profit dropped almost 10% to $292.1 million.

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