NEW YORK (AP) — Alibaba has bought nearly 33 million shares of online daily deal service Groupon.
Groupon Inc.’s stock jumped more than 40 percent in afternoon trading Tuesday.
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 $1.17, or 40.4 percent, to $4.06 in afternoon trading Tuesday. U.S. shares of China-based Alibaba rose $5.97, or 9.8 percent, to $66.86.
Republished with permission from Associated Press