Groupon market value seen as high as USD6b with divestments

Groupon could divest four businesses in the next two years, netting as much as USD730 million, to raise cash as it expands into an e-commerce marketplace, according to Gene Munster, an analyst at Piper Jaffray Cos.

Groupon has a market value of about USD5 billion, though it should be closer to USD6 billion because those businesses are undervalued, Mr Munster said. A majority stake in its Ticket Monster business, which offers daily deals and e-commerce services in South Korea, could fetch about USD500 million, while smaller units might yield between USD30 million and USD100 million each, he said.

“What is safe to say is that Groupon has several stealth assets that are generally underappreciated by investors as far as overall value,” said Mr Munster, who is based in Minneapolis. Private equity firms are the most likely buyers, he said.