Chances Are 50-50 Alibaba Buys Groupon Or Yahoo, Blogger Speculates

In a new article, YoungChinaBiz discussed the possibility that Alibaba Group Holding Ltd BABA 2.44%’s new $3 billion bank loan is setting the company up for a high-profile acquisition of either Groupon Inc GRPN 2.72% or Yahoo! Inc. YHOO 0.85%.

The article suggests that the loan hints at a possible acquisition because Alibaba already had $18 billion on its balance sheet at the end of last year and could now be lining up the cash for a large buyout.

“At the end of the day, I would put chances for a Groupon bid a bit higher than a Yahoo stake buyout, though I would still peg a Groupon bid at only 50-50,” the author projected.

Groupon’s stock surged more than 80 percent in the days following Alibaba’s disclosure of a 5.6 percent stake in the company last month. As soon as the position was disclosed, the market began…

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