Groupon Inc (NASDAQ:GRPN) Take Over Value $2 to Google Inc (NASDAQ:GOOG)

 
on December 08 2012 11:26 AM

Groupon Inc (NASDAQ:GRPN) Take Over Value $2 to Google Inc, (NASDAQ:GOOG)

$1.5b or $2 per share is all that Groupon Inc (NASDAQ:GRPN) Take Over Value $2 to Google Inc (NASDAQ:GOOG) should pay for Groupon Inc (NASDAQ:GRPN) according to Economist Shayne Heffernan.

Groupon shares surged Friday as market players reacted poorly to chatter about a possible takeover for the troubled company.

Groupon closed with a gain of 22.97 percent at $4.68.

The Chicago-based firm made no comment on reports of takeover talk. Nor did Google, which made an unsuccessful $6 billion bid for Groupon a year ago, a successful failure, this year things are very different, Google will slash the offer as GRPN may not even survive the next year without a massive new fund raising.

Shares in Groupon have plunged by some 80 percent since a keenly anticipated public offering late last year. But the company has been hit by concerns about its business model, “deal fatigue” from consumers and questions about accounting.

Groupon in September reported a loss of $3 million in results that came up shy of most analyst forecasts for a small profit.

Its main rival LivingSocial said last month it was cutting 400 jobs, or nearly 10 percent of its staff, in a retrenchment which follows big losses for the company.

The firms aim to make money by selling members deals for discounts on activities, items or services and then splitting the proceeds with the businesses involved.

Both firms have been seeking to diversify, but have been struggling to become profitable.

Relative Valuation
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}" id="CEDViews_Xtra_Company_Overview_RelativeValuation_0" cellpadding="0" cellspacing="0" width="660"> GRPNPeersT12MF12MF12MP/E34.5316.8242.05EV/EBITDA5.193.5411.09Div Yield0.0%0.0%0.0%EV/Sales0.570.353.44P/CF10.509.9516.79P/B3.072.602.91 

GRPN Values at less than half the current trading price

Shayne Heffernan Ph.D.Economist/Hedge Fund ManagerShayne Heffernan oversees the management of funds for institutions and high net worth individuals. He is also an active consultant working with Corporations around the World.He is recognized as one of the leading Economists in South East Asia, as well as the preeminent authority on ASEAN. His opinions and forecasts are widely read by decision makers in the region and Internationally.Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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