Alibaba buys nearly 33 million shares of Groupon
New York — Alibaba has bought nearly 33 million shares of online daily deal service Groupon.
Groupon Inc.’s stock jumped more than 16 percent in Tuesday premarket trading.
The purchase gives the Chinese e-commerce powerhouse about a 5.6 percent 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 percent, to $3.37 before the market open on Tuesday.