Groupon - Substantially Undervalued, Activist Ready
Today, White Brook is publishing its presentation on Groupon, Inc.
In short, I think Groupon is cheap with multiple levers to create substantial value. Board action is likely to be necessary.
White Brook’s thesis is:
The tech stack at Groupon is strong.
The brand is poorly perceived and the consumer facing properties limit innovation.
Despite execution issues, the company’s user base, balance sheet, and cash flow are significant strengths that more capable leadership can harness.
White Brook proposes the company restructure around verticals that can build domain expertise giving each room to dominate consumer mind share while uniting the offerings around an already in place but suppressed loyalty program.
You can find the whole presentation here:
https://whitebrookcapital.box.com/s/li1m9r49d4493o278bzxwkg37gtea8gi
As always feel free to reach out with any questions,
Basil