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Technology / Networks

Tiger Global acquires 9.9% stake in Groupon

US based hedge fund Tiger Global Management has acquired a 9.9% stake in online daily deals company Groupon.

According to a filing with the Securities and Exchange Commission, Tiger Global bought 65 million shares in Groupon for $202.15m.

Groupon, which now sells electronic gadgets and other goods, tried to establish itself as a local e-commerce firm to expand its business.

Groupon had reported a revenue of $568.6m for Q3 2012 but analysts had expected the company to hit $591m in revenues in the quarter.

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The company posted a net loss of $3m, an improvement from last year’s $54.2m but its growth rate has steadily declined.

Earlier this month, Soros Fund Management had acquired 2.5 million shares of Groupon.

Tiger Global had invested in various Internet firms in the past which include Facebook, LinkedIn, Yahoo! and Zynga.

Tiger Global makes the investments through its hedge fund, but it also has venture capital funds that acquire stakes in early-stage private companies.

Last year, Tiger Global invested in Peixe Urbano, a start-up which competes against Groupon in South America.
This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.