The company, which has said it may not be able to survive as a going concern, sold part of its holding in the payment business for less than half of...
Groupon shares lost a quarter of their value after the company disclosed that it sold a slice of its stake in the European electronic payments company SumUp Holdings at a price that was apparently far lower than investors expected.
The problem is that the price implies a valuation for all of SumUp of €3.9 billion, or $4.1 billion. As recently as June 2022, SumUp had announced a $624 million funding round that valued the company at $8.5 billion. In other words, the valuation of SumUp has dropped by more than 50%.The implied value of Groupon’s stake, including the portion just sold, is $94 million, a reduction of nearly $100 million.
“As part of our previously announced plan to improve our liquidity position, Groupon has been evaluating potential monetization of certain non-core assets, including our stake in SumUp,” the company said in a statement in response to a query from Barron’s. “In October, Groupon sold part of its SumUp stake in a transaction between existing SumUp shareholders, with multiple buyers and sellers.”
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