• With shareholders restless, Groupon (NASDAQ:GRPN) is pursuing an acquisition to juice its performance, the WSJ reports, and the big target could be Yelp (NYSE:YELP).
  • Yelp is up 3.5% postmarket following the news.
  • That could merge business reviews with deal offers and transactional services for customers engaging with merchants.
  • It would also result in synergies that could save $200M, sources told the WSJ.
  • “It is reasonable to conclude that a relatively large acquisition by Groupon is forthcoming,” says Chapman Capital founder Robert Chapman, whose firm had been building up to a 1.5% stake but sold Tuesday since Chapman thinks a big acquisition is too risky.
  • And during the company’s July earnings call, CEO Rich Williams said “We see the potential to create a much, much bigger business that is a growth business that can be a part of consumers’ and merchants’ everyday lives.”