Top Movers in the Technology Sector in the Trailing 5-Day Period
Groupon will receive an investment
E-commerce firm Groupon (GRPN) announced that it will receive an investment of $250 million from private investment company Atairos. Atairos is a company that focuses on growth-oriented businesses. The firm’s CEO, Michal Angelakis, will join Groupon’s board of directors as part of the arrangement.
Atairos is backed by Comcast (CMCSA). It committed $4 billion to the private investment firm when the latter launched in early 2016. “The potential in combining Groupon’s local expertise with Comcast’s vast subscriber and advertiser network is something we look forward to closely exploring together,” Comcast’s president and CEO Neil Smit said.
Comcast accounts for 6% of the Consumer Discretionary Select Sector SPDR Fund (XLY).
Investment represents 6% of Groupon
Atairos will purchase convertible debt worth $250 million in Groupon. Groupon stated that the money will be used for general corporate purposes. This includes share buybacks. Groupon approved a $200 million increase in its share repurchase program. It has been extended to April 2018.
Since its initial public offering in November 2011, Groupon had several setbacks. It laid off ~1,100 employees—10% of the total workforce—since September 2015. It closed operations in seven countries.
In November 2015, Eric Lefkofsky—Groupon’s co-founder—stepped down as the CEO. He became the board chairman. He was replaced by Rich Williams.
Shares of other tech firms like Stratasys (SSYS), Rackspace, and Twitter (TWTR) rose 8%, 7.8%, and 6.8%, respectively, in the trailing five-day period.
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