Alibaba buys nearly 33 million shares of Groupon, owns 5.6% stake | business | Hindustan Times
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Alibaba buys nearly 33 million shares of Groupon, owns 5.6% stake

Alibaba has bought nearly 33 million shares of online daily deal service Groupon.

business Updated: Feb 17, 2016 00:11 IST
Alibaba bought a 5.6% stake in Groupon.
Alibaba bought a 5.6% stake in Groupon.(Alibaba)

Alibaba has bought nearly 33 million shares of online daily deal service Groupon.

Groupon Inc’s stock jumped more than 16% on Tuesday’s premarket trading.

The purchase gives the Chinese e-commerce powerhouse about a 5.6% stake in Groupon. Alibaba disclosed the purchase in a regulatory filing on Friday.

The news comes shortly after Groupon reported a fourth-quarter adjusted profit and revenue that beat analysts’ expectations.

Last month Alibaba Group Holding Ltd reported better-than-expected third-quarter results as it benefits from a shift to mobile spending and a growth in users.

Shares of Chicago-based Groupon added 48 cents, or 16.6%, to $3.37 before the market open on Tuesday.