The Wall Street Journal reported that Groupon shares rose 24% to $4.73 in today’s trading. If you’re wondering what brought on this rise in the daily deal provider’s stock, WSJ says there was no substantial news to trigger the move.
John Letzing, reporter at Dow Jones Newswires said, “Short interest in Groupon is high, at more than 20%, raising the possibility that some short sellers have simply decided to take their profits now and buy shares to close out their position. Groupon, which has struggled to gain much investor confidence since going public, has been a heavily shorted stock.”
But later reports from Bloomberg say there is speculation that Google may be considering a play for Groupon again:
The stock plunge since the IPO may spark renewed takeover interest from Google, which had considered acquiring Groupon for $6 billion the year before its public market debut, people familiar with the matter said at the time. Now that Groupon has lost half its market value, Google might take another look, said Tom Forte, an analyst at Telsey Advisory Group.
“Where the stock is currently trading, it’s a takeout candidate,” Forte said. “If Google was interested at $6 billion, I think it’s a possibility.”
Read More: Groupon Profile