Tiger Global buys 9.9 percent stake in Groupon
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NEW YORK Shares of Groupon (GRPN) are up in after-hours trading after a hedge fund disclosed it bought a 9.9 stake in the online deals company.
Tiger Global Management said in a regulatory filing that it owns 65 million shares of the Chicago company, which faces slowing revenue growth and accounting investigations. The fund, managed by 37-year-old Chase Coleman, was the most profitable hedge fund of 2011. It has holdings in a number of tech companies, including Apple (AAPL) and Google (GOOG).
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Groupon pioneered the online daily deals market, offering subscribers deep discounts on everything from spa sessions to restaurant meals to toe fungus treatments. To expand its business, Groupon has tried to establish itself as a local e-commerce company. It now sells electronic gadgets and other goods.
Shares of the company rallied with the broader markets and closed up 4.2 percent, then gained 5 percent more in extended trading to $3.26 per share. The company went public a year ago at $20.
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