Groupon Hits $6 Billion with Divestments

It has been estimated that with divestments Groupon is worth up to $6 billion in market value. The popular online coupon site has been valued much higher in the market than was initially thought.

Groupon Inc. has a current market value of $5 billion and taking into account their subsidiary companies it is estimated to reach up to $6 billion. According to Bloomberg.com an analyst at Piper Jaffray Cos Gene Munster was quoted as saying: “What is safe to say is that Groupon has several stealth assets that are generally underappreciated by investors as far as overall value”.

Groupon has been struggling for years to turn a profit from its online sales until co-founder Eric Lefkofsky took over as CEO in August 2013. Under his leadership, Groupon has acquired all the companies that they might now be selling to boost the company’s cash flow. In January 2014 Groupon acquired a company with the name Ticket Monster for $260 million. Ticket Monster is now considered to be a large part of Groupon and it has been announced that Groupon will be considering strategic options for the company.

Groupon spokesperson Nicholas Halliwell has declined to comment on whether Groupon is looking to sell any of their other businesses according to Bloomberg.com. It is still unclear what Groupon’s plans are for the future. Selling some of their subsidiary companies may free up cash flow for a number of reasons. Some speculations may include expanding their e-commerce footprint, delivering food and goods or perhaps new fulfilment centres.


Whatever Groupon Inc. decides to do I am sure that we are still going to hear about their brand for a long time to come. With any luck this can only be good news to consumers giving the old electronic market place another squeeze and forcing prices down.

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Kobus Heinemann
Kobus Heinemann
I was caught up in the technology storm from a very young age. Being a child of Generation X, playing computer games and always building “the next great computer rig” is my passion. I'm mesmerised with any and all techy wonders crossing my path.