Groupon's Interest in Yelp Could Be Inspired by This Chinese Company

According to unnamed sources and reported by the Wall Street Journal, Groupon (NASDAQ: GRPN), the local deal coupon specialist, may be eyeing a deal to buy Yelp (NYSE: YELP). Both stocks have been struggling of late against the broader market, but could a combination of the two companies really help? My colleague Rick Munarriz thinks so, though a deal may be difficult to pull off, given that the acquisition would be an expensive merger of equals.

Why would Groupon, which has been shedding revenue and customers amid a transformation plan, think that buying an even larger company – along with the dilution or extra debt required – would be the answer?

The answer may lie across the Pacific.

Source Fool.com